Answer the following question. Show
SolutionGiven : `"Elasticity of demand" = "Percentage change in Quantity Demanded"/"Percentage change in Price"` `"Percentage change in Quantity demand" = ("Q"_2-"Q"_1)/"Q"_1 xx 100` = `(150-120)/(150) xx 100 = 20%` `"Elasticity of demand" = "Percentage change in Quantity Demanded"/"Percentage change in Price"` = `(20)/(40) = 0.5` Concept: Elasticity of Demand Is there an error in this question or solution? APPEARS INHow do you calculate price elasticity of demand for a commodity?The way to calculate price elasticity is to divide the change in demand (or supply) by the change in price. This will tell you which bucket your product falls into. A value of one means that your product is unit elastic and changes in your price reflect an equal change in supply or demand.
When the price of commodity increases by 40% and its quantity demanded falls from 150 to 120 units then the price elasticity of demand for a commodity is?Answer. Ed = 1/2 . elasticity of demand is less than unity.
When the price of a commodity falls its demand will go up likewise when the price of a commodity rises its demand will fall is known as?The law of demand introduces an inverse relationship between price and demand for a good or service. It simply states that as the price of a commodity increases, demand decreases, provided other factors remain constant.
Is the price of commodity increases by 20% and quantity demanded increases by 40% then elasticity of demand would be?If the price of any commodity decreases by 20% and the demand for that commodity increases by 40% then the elasticity of demand would be highly elastic as the proportionate change of quantity demand is greater than the proportionate change of price.
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When the price of commodity increased by 40% and its quantity demanded falls from 150 to 120 units then the price elasticity of demand for a commodity is?
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