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34.A consumer rises its demand by 50% of a commodity when its price falls by 1 rupees per unit. calculate new price when price elasticity of demand is (-)2.5 ? also comment on elasticity ?
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34.A consumer rises its demand by 50% of a commodity when its price fa...
The new price of the commodity when the price elasticity of demand is (-)2.5 is calculated using the formula: New price = Old price x (1- (change in demand/price elasticity)). Therefore, the new price is 0.90 rupees per unit. 
The price elasticity of demand of (-)2.5 indicates that the demand for the commodity is inelastic. This means that changes in price have a relatively small effect on the demand for the commodity.

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34.A consumer rises its demand by 50% of a commodity when its price falls by 1 rupees per unit. calculate new price when price elasticity of demand is (-)2.5 ? also comment on elasticity ?
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34.A consumer rises its demand by 50% of a commodity when its price falls by 1 rupees per unit. calculate new price when price elasticity of demand is (-)2.5 ? also comment on elasticity ? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about 34.A consumer rises its demand by 50% of a commodity when its price falls by 1 rupees per unit. calculate new price when price elasticity of demand is (-)2.5 ? also comment on elasticity ? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 34.A consumer rises its demand by 50% of a commodity when its price falls by 1 rupees per unit. calculate new price when price elasticity of demand is (-)2.5 ? also comment on elasticity ?.
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