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?

### Answers

 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

 Adarsh Yadav May 21, 2020
S

 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

 Shriyanshu Keshari May 20, 2019
5/2 *6/10 =1.5

 Sudhanshu Ranjan 2 weeks ago
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