Join Sarthaks eConnect Today - Largest Online Education Community!
0 votes
19 views
asked in Economics by (65.1k points)

Originally, a product was selling for Rs. 10 and the quantity demanded was 1000 units. The product price changes to Rs. 14 and as a result the quantity demanded changes to 500 units. Calculate the price elasticity

1 Answer

+1 vote
answered by (68.2k points)
selected by
 
Best answer

ep = ∆q/∆p x p/q

= 500/4 x 10/1000

= 1.25.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

One Thought Forever

“There is a close connection between getting up in the world and getting up in the morning.“
– Anon
~~~*****~~~

Categories

...