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30 units of a commodity is purchased by a con- sumer at the price of 46 per unit. When the price rises to 50 per unit, he buy 15 units only. The co-efficient of elasticity do demand is- (a) 4.75 (b) 5 (c) 5.75 (d) 6?
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30 units of a commodity is purchased by a con- sumer at the price of 4...
Calculation of the Coefficient of Elasticity of Demand
To calculate the coefficient of elasticity of demand, we need to use the formula:
E = (ΔQ/ΔP) * (P/Q)
Where ΔQ is the change in the quantity demanded, ΔP is the change in price, P is the original price, and Q is the original quantity demanded.
Calculation of ΔQ
The consumer initially purchases 30 units of the commodity at the price of 46 per unit. When the price rises to 50 per unit, he only buys 15 units. Therefore, the change in quantity demanded is:
ΔQ = 15 - 30 = -15
Calculation of ΔP
The change in price is:
ΔP = 50 - 46 = 4
Calculation of P and Q
The original price is P = 46, and the original quantity demanded is Q = 30.
Calculation of E
Now we can plug these values into the formula:
E = (-15/4) * (46/30) = -1.875 * 1.533 = -2.87475
The coefficient of elasticity of demand is negative, which means the commodity is price inelastic. The absolute value of the coefficient is 2.87475, which is closest to 2.9. Therefore, the answer is (d) 6.
To calculate the coefficient of elasticity of demand, we need to use the formula:
E = (ΔQ/ΔP) * (P/Q)
Where ΔQ is the change in the quantity demanded, ΔP is the change in price, P is the original price, and Q is the original quantity demanded.
Calculation of ΔQ
The consumer initially purchases 30 units of the commodity at the price of 46 per unit. When the price rises to 50 per unit, he only buys 15 units. Therefore, the change in quantity demanded is:
ΔQ = 15 - 30 = -15
Calculation of ΔP
The change in price is:
ΔP = 50 - 46 = 4
Calculation of P and Q
The original price is P = 46, and the original quantity demanded is Q = 30.
Calculation of E
Now we can plug these values into the formula:
E = (-15/4) * (46/30) = -1.875 * 1.533 = -2.87475
The coefficient of elasticity of demand is negative, which means the commodity is price inelastic. The absolute value of the coefficient is 2.87475, which is closest to 2.9. Therefore, the answer is (d) 6.
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30 units of a commodity is purchased by a con- sumer at the price of 46 per unit. When the price rises to 50 per unit, he buy 15 units only. The co-efficient of elasticity do demand is- (a) 4.75 (b) 5 (c) 5.75 (d) 6?
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30 units of a commodity is purchased by a con- sumer at the price of 46 per unit. When the price rises to 50 per unit, he buy 15 units only. The co-efficient of elasticity do demand is- (a) 4.75 (b) 5 (c) 5.75 (d) 6? 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 30 units of a commodity is purchased by a con- sumer at the price of 46 per unit. When the price rises to 50 per unit, he buy 15 units only. The co-efficient of elasticity do demand is- (a) 4.75 (b) 5 (c) 5.75 (d) 6? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 30 units of a commodity is purchased by a con- sumer at the price of 46 per unit. When the price rises to 50 per unit, he buy 15 units only. The co-efficient of elasticity do demand is- (a) 4.75 (b) 5 (c) 5.75 (d) 6?.
30 units of a commodity is purchased by a con- sumer at the price of 46 per unit. When the price rises to 50 per unit, he buy 15 units only. The co-efficient of elasticity do demand is- (a) 4.75 (b) 5 (c) 5.75 (d) 6? 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 30 units of a commodity is purchased by a con- sumer at the price of 46 per unit. When the price rises to 50 per unit, he buy 15 units only. The co-efficient of elasticity do demand is- (a) 4.75 (b) 5 (c) 5.75 (d) 6? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 30 units of a commodity is purchased by a con- sumer at the price of 46 per unit. When the price rises to 50 per unit, he buy 15 units only. The co-efficient of elasticity do demand is- (a) 4.75 (b) 5 (c) 5.75 (d) 6?.
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