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When price of a commodity falls by Rs. 1 per unit, its quantity demanded rises by 3 units. Its price elasticity of demand is (-)2. Calculate its quantity demanded if the price before the change was Rs. 10 per unit. |
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Answer» <P> SOLUTION :`{:("PED" =[-]2" GIVEN"),("Price before change [Initial Price] P = 10Initial Quantity "(Q)=?),("New Price "[P_(1)]=9 "New Quantity " (Q_(1))=?),(DELTA P=-1" [Given]" Delta Q=3):}``PED=(Delta Q)/(Delta P)xx(P)/(Q) "or" (-)2=(3)/((-)1)xx(10)/(Q)` `Q=(30)/(2)=15` So, the quantity demanded at price before change [P], i.e., 10, is equal to 15. |
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