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 demand is

Fortunate017

11 years ago

It is 2....30-20=10..%Change in Q demanded is 10/20×100=50.now#5-#4=#1.%change in price is 1/4×100=25...d formular %change in Q demanded/% changein price is 50/25=2

Joyce 456

10 years ago

%change in quantity demand /%change in price

Solution:%change in quantity demand=30➖20=10,use 20 the is old demand to divide 10 and ✖ it by 100 that is 10➗ 20✖ 100=50.

%change in price=#5-#4=1,use 4 the old price to ➗ 1 and ✖ it by 100 that is 1➗ 4✖ 100=25.

To get the elasticity of demand is 50➗25=2.

seyi Adeforijin

12 years ago

you wil get the answer if you use its formular, which says, percentage change in quantity demanded/percentage in price

seyi Adeforijin

12 years ago

all over percentage change in price.

Okhae

13 years ago

correct

Briddiegold

2 years ago

pls where am i going to do my workings in the exam hall?it's my first time.

jackloo25

12 years ago

pls explain

tripleade2020

12 years ago

Pls explain

mogm

1 year ago

IF HTE COMMOUNDENT INCRENCE FORM 40 TO 30 AND THE PRICE INCRENCE TO 4 TO 5 WHAT IS THE EIELASTICES SUPPLICES

Damisislat

3 years ago

An easier formula is Change in Qd ÷ Change in Price × Old price÷Old Qd

mikkywizzy

11 years ago

therefore since elasticity is 2,definitely elasticity of demand is elastic/fairly elasticity of demand . E=>1<

Be.thel001

1 year ago

how did they solve this question!?

johnsegx.

12 years ago

Den d answer shld b 0.5 nt 2.