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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!!?
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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.
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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!!?
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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!!?.
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