A consumer spends Rs. 80 on purchasing a commodity when its price is Rs. 1 per unit and spends Rs. 96 when the price is Rs. 2 per unit. Calculate the price elasticity of demand. Explain this

Deepika · 11 Jun 2024

Ok tq👍

Goongoon · 11 Jun 2024

U just have to divide total price spent by price of individual. 96/2

Deepika · 11 Jun 2024

But I don't understand how will you compute that 48 please explain

Rahul · 11 Jun 2024

.4

Goongoon · 11 Jun 2024

32/1×1/80=0.4

Goongoon · 11 Jun 2024

Then apply formula ∆Q/∆P × P/Q = 0.4

Goongoon · 11 Jun 2024

See if he's spending 80rs for 1 good means he's buying 80 commodities then price is 96 means he's purchasing 48 Commodities

Deepika · 11 Jun 2024

0.4 is a right answer but anyone explain it how will come?

Navya · 11 Jun 2024

0.2 ?

Deepika · 11 Jun 2024

Ok but explain it

Goongoon · 11 Jun 2024

Is ans 0.4?