12th Class Economics Solved Paper - Economics 2013 Outside Delhi Set-II

  • question_answer
    When the price of a commodity falls by 20 per cent, its demand rises from 400 units to 500 units. Calculate its price elasticity of demand.


    \[Ed=\frac{\text{ }\!\!%\!\!\text{ }\,\,\text{change}\,\,\text{in}\,\,\text{quantity}\,\,\text{Demanded}}{\text{ }\!\!%\!\!\text{ }\,\,\text{change}\,\,\text{in}\,\,\text{price}}\]
    \[%\,\,\text{change}\,\,\text{in}\,\,\text{quantity}\,\,\text{Demanded}\,=\,\frac{{{Q}_{2}}-Q}{{{Q}_{1}}}\,\,\times \,\,100\]
                \[=\frac{500-400}{400}\,\,\times \,\,100\]
                = 25%

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