From the following data calculate price elasticity of demand | |
Price (Rs.) | Demand (units) |
9 | 100 |
9 | 150 |
Answer:
Given, Initial Price, P = 9 Initial Quantity demanded, Q = 100 Final Price,\[{{P}_{1}}\] = 9 Final Quantity demanded,\[{{Q}_{1}}\] = 150 \[\Delta P=(~-P)=(9-9)=0\] and, \[\Delta Q=(Q)=(150100)=50\] Now, \[{{E}_{d}}=\frac{\Delta Q}{\Delta P}\times \frac{P}{Q}\] Substituting the values, \[{{E}_{d}}=\frac{50}{0}\times \frac{9}{100}=\infty \] Hence, demand is Perfectly Elastic.
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