ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The price of a commodity is Rs 15 per unit and its quantity demanded is 500 units. Its quantity demanded rises by 80 units as a result of a fall in its price by 20 %.Calculate Ed
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-1
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-0.8
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-0.5
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-0.6
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Explanation:
Detailed explanation-1: -As a result of 15 per cent rise in the price of a commodity, its supply increases from 25 units to 30 units. Calculate elasticity of supply. (Ans. E = 1.33]
Detailed explanation-2: -Answer. Price elasticity of demand =1.25.
Detailed explanation-3: -What is the new quantity demanded when price elasticity is 1 and price changes from Rs. 15 to Rs. 10 and the original quantity demanded was 10 units? a)15 unitsb)20 unitsc)8 unitsd)12 unitsCorrect answer is option ‘A’.
Detailed explanation-4: -What is the elasticity of supply, when price changes from Rs. 15 to Rs. 12 and supply change from 6 units to 5 units? a)0.77b)0.87c)0.833d)0.58Correct answer is option ‘C’.
There is 1 question to complete.