Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Pl work out my problems

CA 835 views 4 replies

intermediate(ipc)course

1460 Points Joined August 2009

as the price of a commodity 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 (4)

AKSHIT MALHOTRA

C.A Final Student

1337 Points Joined January 2011

A IS THE ANSWER.

% CHANGE IN QTY/% CHANGE IN PRICE.

=20/50 =0.4

rajesh

Asst Manager

71 Points Joined October 2011

The Price Elasticity of Demand (commonly known as just price elasticity) measures the rate of response of quantity demanded due to a price change. The formula for the Price Elasticity of Demand (PEoD) is:

PEoD = (% Change in Quantity Demanded)/(% Change in Price)

The answer to the question you have given is 2.5.

The Price elasticity shows that demand is Price Elastic (sensitive to price changes).

AKSHIT MALHOTRA

C.A Final Student

1337 Points Joined January 2011

sorry yr

i wasn't in touch

u r right

Ben Mote

Manager

22 Points Joined January 2018

As we know that in today’s world everything is so expensive that are not affordable for the rich as well as poor’s. We can see on essay writing the price of everything whether they are cheap or not.