At a price of Rs. 50 per unit the quantity demanded of a commodity is 1000 units . When its price falls by 10 percent , its quantity demanded rises to

Question

At a price of Rs. 50 per unit the quantity demanded of a commodity is 1000 units . When its price falls by 10 percent , its quantity demanded rises to

At a price of Rs. 50 per unit the quantity demanded of a commodity is 1000 units . When its price falls by 10 percent , its quantity demanded rises to 1080 units . Calculate its price elasticity of demand . Is its demand inelastic ? Given reasons for your answer.

Monjur Alahi

6 views

2025-01-04 04:42

1 Answers

Related Questions

At Rs.12/unit, quantity supplied of a commodity is 500 units. When its price riese to Rs.15/unit, its quantity supplied rises to 650 units. Calculate

2 Answers 6 Views

When price of a good falls by 10 percent , its quantity demanded rises from 40 units to 50 units. Calculate price elasticity of demand by the percenta

2 Answers 6 Views

The quantity demanded of a commodity rises from 800 units to 850 units when its price falls from Rs. 20 per unit to Rs. 19 per unit . Calculate its el

2 Answers 5 Views

When price of a commodity X falls by 10 percent , its demand rises from 150 units to 180 units. Calculate its price elasticity of demand . How much sh

2 Answers 5 Views

At price of Rs. 8 per unit, the quantity supplied of a commodity is 200 units. Its price elasticity of supply is 1.5 . If its price rises to Rs. 10 pe

2 Answers 11 Views

The price of a commodity is Rs.12 per unit and its quantity supplied is 500 units. When its price rises to Rs. 15 per unit , its quantity supplied ris

2 Answers 6 Views

When the price of a commodity falls from Rs. 10 per unit to Rs. 9 per unit , its quantity supplied falls by 20 percent . Calculate its price elesticit

2 Answers 8 Views

The price of a commodity is Rs. 5 per unit and its quantity suppled is 600 units. If its price rises to Rs. 6 per unit , its quantity supplied rises b

2 Answers 11 Views

Due to a 10 percent rise in the price of a commodity , its quantity supplied rises from 400 units to 450 units. Calculate its price elasticity of supp

2 Answers 6 Views

The price elasticity of supply of a commodity is 2. When its price falls from Rs. 10 to Rs. 8 per unit, its quantity supplied falls by 500 units . Cal

2 Answers 8 Views

Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

Salim Ahmed Kawsar

`E_(P)=(P)/(Q)xx(DeltaQ)/(DeltaP)=(50)/(1000)xx(80)/(-5)=(-)(4)/(5)=(-)0.8`
The demand is inelastic because the absolute value of clasticity is less than 1 (sign ignored).

6 views Answered 2023-02-05 15:29