CA Foundation Exam > CA Foundation Questions > The price of a commodity decreases from rupee...
Start Learning for Free
The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!?
Most Upvoted Answer
The price of a commodity decreases from rupees RS 6 TO RS 4 and the qu...
Solution:
Given:
Initial price (P1) = Rs 6
Final price (P2) = Rs 4
Initial quantity demanded (Q1) = 10 units
Final quantity demanded (Q2) = 15 units
Step 1: Calculate the percentage change in price (P)
Percentage change in price (P) = (P2 - P1) / P1 x 100%
= (4 - 6) / 6 x 100%
= -33.33%
Step 2: Calculate the percentage change in quantity demanded (Q)
Percentage change in quantity demanded (Q) = (Q2 - Q1) / Q1 x 100%
= (15 - 10) / 10 x 100%
= 50%
Step 3: Calculate the price elasticity of demand (Ed)
Price elasticity of demand (Ed) = % change in quantity demanded / % change in price
= 50% / -33.33%
= -1.5
Step 4: Interpretation
The quotient of price elasticity of demand (-1.5) indicates that the commodity is price elastic, which means that a small change in price leads to a proportionally larger change in quantity demanded.
Conclusion:
The quotient of price elasticity of demand is -1.5, indicating that the commodity is price elastic.
Given:
Initial price (P1) = Rs 6
Final price (P2) = Rs 4
Initial quantity demanded (Q1) = 10 units
Final quantity demanded (Q2) = 15 units
Step 1: Calculate the percentage change in price (P)
Percentage change in price (P) = (P2 - P1) / P1 x 100%
= (4 - 6) / 6 x 100%
= -33.33%
Step 2: Calculate the percentage change in quantity demanded (Q)
Percentage change in quantity demanded (Q) = (Q2 - Q1) / Q1 x 100%
= (15 - 10) / 10 x 100%
= 50%
Step 3: Calculate the price elasticity of demand (Ed)
Price elasticity of demand (Ed) = % change in quantity demanded / % change in price
= 50% / -33.33%
= -1.5
Step 4: Interpretation
The quotient of price elasticity of demand (-1.5) indicates that the commodity is price elastic, which means that a small change in price leads to a proportionally larger change in quantity demanded.
Conclusion:
The quotient of price elasticity of demand is -1.5, indicating that the commodity is price elastic.
Community Answer
The price of a commodity decreases from rupees RS 6 TO RS 4 and the qu...
P 1=6, p 2=4,
q 1=10 , q 2= 15
Point elasticity= -dq/dp×p/q,
where -dq/dp= q2-q1/p2-p1
so, 15-10/4-6 × 6/10
=5/-2 × 6/10
= 3/-2
=-1.5 ans.
q 1=10 , q 2= 15
Point elasticity= -dq/dp×p/q,
where -dq/dp= q2-q1/p2-p1
so, 15-10/4-6 × 6/10
=5/-2 × 6/10
= 3/-2
=-1.5 ans.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!?
Question Description
The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!?.
The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!?.
Solutions for The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!? defined & explained in the simplest way possible. Besides giving the explanation of
The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!?, a detailed solution for The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!? has been provided alongside types of The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!? theory, EduRev gives you an
ample number of questions to practice The price of a commodity decreases from rupees RS 6 TO RS 4 and the quantity demanded of a good increases from 10 units to 15 units find the quotient of price elasticity (using point ELASTICITYmethod). can any one solve this please!!? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup