Original Price of the Comedy T

To determine the original price of the comedy T-shirt, we need to use the price elasticity of demand formula. Price elasticity of demand measures the responsiveness of quantity demanded to a change in price. The formula for price elasticity of demand is:

Price Elasticity of Demand = (% Change in Quantity Demanded) / (% Change in Price)

We are given that the price elasticity of demand is 0.71 and the demand changes from 20 units to 15 units when the new price is Rs.10. Let's calculate the percentage change in quantity demanded and the percentage change in price.

Step 1: Calculate the Percentage Change in Quantity Demanded

Percentage Change in Quantity Demanded = (New Quantity Demanded - Original Quantity Demanded) / Original Quantity Demanded

Percentage Change in Quantity Demanded = (15 - 20) / 20 = -0.25 or -25%

Step 2: Calculate the Percentage Change in Price

Percentage Change in Price = (New Price - Original Price) / Original Price

Percentage Change in Price = (10 - Original Price) / Original Price

Now, we need to rearrange the formula to solve for the original price.

Percentage Change in Quantity Demanded = (Price Elasticity of Demand) * (Percentage Change in Price)

-0.25 = 0.71 * [(10 - Original Price) / Original Price]

Solving for Original Price:

-0.25 = 0.71 * (10 - Original Price) / Original Price

-0.25 * Original Price = 0.71 * (10 - Original Price)

-0.25 * Original Price = 7.1 - 0.71 * Original Price

-0.25 * Original Price + 0.71 * Original Price = 7.1

0.46 * Original Price = 7.1

Original Price = 7.1 / 0.46

Original Price = Rs. 15.43 (rounded to two decimal places)

Therefore, the original price of the comedy T-shirt is Rs. 15.43.