A consumer spends Rs. 80 on a commodity when its price is Rs. 1 per unit and spends Rs. 96 when the price is Rs. 2 per unit . What is the price elasti
A consumer spends Rs. 80 on a commodity when its price is Rs. 1 per unit and spends Rs. 96 when the price is Rs. 2 per unit . What is the price elasticity of demand for the commodity ?
Note : By dividing expenditure with the price we can get the quantity demanded.
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Given
`{:("P"," Exp.","Qd.=Exp"divP),(1," "80," "80),(2," "96," "48):}`
`E_(P)=(P)/(Q)xx(DeltaQ)/(DeltaP)xx(1)/(80)xx(-32)/(1)=(-)0.4.`
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