If the quantity demanded of a commodity increases from 20 to 30 when there is an increase in price from N4 to N5, the elasticity of deman is_______

MahAsp

4 years ago

from the above question the answer is ( C )
prove.

The quantity changes from 20-30 and the price changes from 4 - 5.
the formula for the change in quantity is
for price
NewP - oldP/ oldP *100/1
for quantity
NewQ - oldQ/ oldQ *100/1
therefore

30-20/20*100
10/20*100 = 50
%D in Q
5-4/4*100
1/4*100=25
%D in P
to find the elasticity the formula is
%D in Q/ %D in P

therefore 50/25 = 2