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 percentage method.
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Price elasticity of demand of a good is (-) 2. At a price of Rs. 10 per unit 40 units of this good are bought . How units will be bought at a price of
`E_(P)=(P)/(Q)xx(DeltaQ)/(DeltaP)` `(-)2=(10)/(40)xx(DeltaQ)/(1)` `(-)80=10DeltaQ` `DeltaQ=-8` New `Q=Q+DeltaQ=40+(-8)=32` units.
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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
`E_(P)=(P)/(Q)xx(DeltaQ)/(DeltaP)=(50)/(1000)xx(80)/(-5)=(-)(4)/(5)=(-)0.8` The demand is inelastic because the absolute value of clasticity is less than 1 (sign ignored).
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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.`
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Price elasticity of demand of a good is (-)2. The consumer buys a certain quantity of this good at a price of Rs. 8 per unit . When the price falls he
`E_(P)=(% "change in " Q_(d))/(% " change in P")` `(-)2=(50%)/(% " change in P")` `%` Change in P `=(50)/(-2)=-25%` New `P=P+%` change in P `=8+(-25% " change of " 8)...
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Price elasticity of demand of a good is (-)1 . When its price falls by one rupee , its demand rises from 16 to 18 units . Calculate the price before c
`E_(P)=(P)/(Q)xx(DeltaQ)/(DeltaP)` `(-)1=(P)/(16)xx(2)/(-1)` `2P=16orP=8(Rs.)`.
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When the price of X doubles , its quantity demanded falls by 60 percent . Calculate its price elasticity of demand . What should be the percentage cha
`E_(P)=(% " change in " Q_(d))/(% " change in P")=(-60%)/(100%)=-0.6` `-0.6=(100%)/(% " change in P")` `%` change in P `=(100%)/(-0.6)=-166.67%`.
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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%`.
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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`.
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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