12th Class Economics Solved Paper - Economics 2014 Delhi Set-III

  • question_answer
    A consumer buys 30 units of a good at a price of Rs. 10 per unit. Price elasticity of demand for the good is (-1). How many units the consumer will buy at a price of Rs. 9 per unit? Calculate.


    \[{{Q}_{1}}=30,{{Q}_{2}}=?,{{P}_{1}}=Rs\,\,10,\,\,{{P}_{2}}=\,Rs\,\,9\] and \[{{E}_{d}}=-1\]
    Therefore,          \[\Delta Q={{Q}_{2}}-{{Q}_{1}}\] and \[\Delta P={{P}_{2}}-{{P}_{1}}=\,\,Rs\,\,(-1)\]
                            \[{{E}_{d}}=\frac{\Delta Q}{Q}\,\,\times \,\,\frac{P}{Q}\]
                            \[-1=\frac{({{Q}_{2}}-{{Q}_{1)}}}{30}\,\,\times \,\,\frac{{{P}_{1}}}{\Delta P}\]
                            \[-1=\frac{({{Q}_{2}}-30)}{30}\,\,\times \,\,\frac{10}{(-1)}\]
    Therefore, the consumer will buy 33 units of the good at a price of Rs. 9.

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