A consumer buys 80 units of a good at a price of Rs. 4 per unit . When the price falls , he buys 100 If price elasticity of demand is (-) 1, find out
A consumer buys 80 units of a good at a price of Rs. 4 per unit . When the price falls , he buys 100 If price elasticity of demand is (-) 1, find out the new price.
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`E_(p)=(P)/(Q)xx(DeltaQ)/(DeltaP)`
`(-)1=(40)/(80)xx(20)/(DeltaP)`
`(-)1=(1)/(DeltaP)`
`DeltaP=-1`
New price `=P+DeltaP=4+(-1)=Rs.3`.
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