Pl work out my problems

CPT 437 views 2 replies

as the prie of a ommodity rises from 10 to 12,its demand falls from 100 units to 50 units.calculate elasticity of demand.

a).4                                                                                                                           b).3

 c).1                                                                                                                           d).2

Replies (2)

Elasticity of demand = (% change in Demand / % change in price)

Here % change in Demand = (50-100/100)*100 = -50%

          % change in Price        = (12-10/10)*100     = 20%

             EOD                             =  50% / 20%            = -2.5 

So i think the correct answer is not provided in the options..........

I agree with Priya 

 

CA_Information

 

 


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