When price falls from Rs. 6 to Rs. 4, the demand rises form 10 to 15 units. Calculate price elasticity of demand. (Point elasticity)
- a)1.5
- b)3.5
- c)0.5
- d)2
Correct answer is option 'A'. Can you explain this answer?
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Answers
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Somnath Khaneja
May 06, 2020 |
Price elasticity = (change in quantity demanded ÷change in price )×(initial price÷ initial demand) (5÷2)×(6÷10) that's (2.5×0.6) gives 1.5
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Seema Agarwal
Jul 08, 2018 |
Price elasticity= change in quanty demanded/change in price × initial price/ initial demand =5(15-10)/ 2(6-4) × 6/10 = 3/2 =1.5
Price elasticity = (change in quantity demanded ÷change in price )×(initial price÷ initial demand) (5÷2)×(6÷10) that's (2.5×0.6) gives 1.5
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Price elasticity = (change in quantity demanded ÷change in price )×(initial price÷ initial demand) (5÷2)×(6÷10) that's (2.5×0.6) gives 1.5
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