At a price of Rs. 50 per unit the quantity demanded of a commodity is 1000 units . When its price falls by 10 percent , its quantity demanded rises to 1080 units . Calculate its price elasticity of demand . Is its demand inelastic ? Given reasons for your answer.
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At Rs.12/unit, quantity supplied of a commodity is 500 units. When its price riese to Rs.15/unit, its quantity supplied rises to 650 units. Calculate
`{:(" P 12"),(" P"_(1)" 15"),(ulbar(DeltaP" 3")):}" "{:("Q 500"),("Q"_(1)" 650"),(ulbar(DeltaQ" 150")):}" "P.e_(S)=(P)/(Q)xx(DeltaQ)/(DeltaP)=(12)/(500)xx(150)/(3)=1.2` Yes, supply is elastic as it is greater than one.
2 Answers 3 views
When price of a good falls by 10 percent , its quantity demanded rises from 40 units to 50 units. Calculate price elasticity of demand by the percenta
`E_(P)=(%" change in Qty . Demanded")/(% " change in price")=((10)/(40)xx10)/(-10)=(25)/(-10)=(-)2.5`
2 Answers 1 views
The quantity demanded of a commodity rises from 800 units to 850 units when its price falls from Rs. 20 per unit to Rs. 19 per unit . Calculate its el
`E_(P)=(%"change in " Q_(d))/(% " change in P")=((50)/(800)xx100)/(-(1)/(20)xx100)=(-)1.25.`
2 Answers 2 views
When price of a commodity X falls by 10 percent , its demand rises from 150 units to 180 units. Calculate its price elasticity of demand . How much sh
`E_(P)=(% " change in " Q_(d))/(% " change in P")=((30)/(150)xx100)/(-10)=(-2)` `-2=((60)/(150)xx100)/(%" change in price")` `%` change in Price `=(60)/(150)xx100xx(1)/(-2)=-20%`.
2 Answers 1 views
At price of Rs. 8 per unit, the quantity supplied of a commodity is 200 units. Its price elasticity of supply is 1.5 . If its price rises to Rs. 10 pe
`E_(s)=(P)/(Q_(s))xx(DeltaQ_(s))/(DeltaP)` `1.5=(8)/(200)xx(DeltaQ_(s))/(2)` `8DeltaQ_(s)=600` `DeltaQ_(s)=75` New `Q=Q_(s)+DeltaQ_(s)=200+75=275` units
2 Answers 3 views
The price of a commodity is Rs.12 per unit and its quantity supplied is 500 units. When its price rises to Rs. 15 per unit , its quantity supplied ris
`E_(s)=(P)/(Q_(s))xx(DeltaQ_(s))/(DeltaP)=(12)/(500)xx(150)/(3)=1.2` Yes, the supply is elastic because `E_(s) gt 1`
2 Answers 2 views
When the price of a commodity falls from Rs. 10 per unit to Rs. 9 per unit , its quantity supplied falls by 20 percent . Calculate its price elesticit
Percent change in price `=(-1)/(10)xx100=-10%` Percent change in supply =-20% `E_(s) =("Percentage change in supply")/("Percentage change in price")=(-20)/(-10)=2`
2 Answers 2 views
The price of a commodity is Rs. 5 per unit and its quantity suppled is 600 units. If its price rises to Rs. 6 per unit , its quantity supplied rises b
`E_(s) =(%"Change in supply")/(%"change in price")=(25)/((1)/(5)xx100)=(25)/(20)=1.25` Supply is elastic because `E_(s)gt 1`.
2 Answers 7 views
Due to a 10 percent rise in the price of a commodity , its quantity supplied rises from 400 units to 450 units. Calculate its price elasticity of supp
`E_(s)=(%"Change in supply")/(% "Change in price ")=((50)/(400)xx100)/(10)=((25)/(2))/(10)=(25)/(10)=1.25` Supply is elastic because `E_(s) gt 1`.
2 Answers 1 views
The price elasticity of supply of a commodity is 2. When its price falls from Rs. 10 to Rs. 8 per unit, its quantity supplied falls by 500 units . Cal
`E_(s)=(P)/(Q)xx(DeltaQ)/(DeltaP),2=(10)/(Q)xx(-500)/(-2),4Q=5000,Q=1250` Supply at `Rs 8=Q+ DeltaQ=1250 +(-500)=750` units.
2 Answers 4 views