Question

When the price of X doubles , its quantity demanded falls by 60 percent . Calculate its price elasticity of demand . What should be the percentage change in price so that its quantity demanded doubles.

Answer 1

`E_(P)=(% " change in " Q_(d))/(% " change in P")=(-60%)/(100%)=-0.6`
`-0.6=(100%)/(% " change in P")`
`%` change in P `=(100%)/(-0.6)=-166.67%`.