1. Consider the demand curve D(p) = 10-3p. What is the elasticity at price 5/3?
2. When price ofa good rises from Rs. 20 per unit to Rs. 23 per unit, its demand falls by 30%. Calculate price elasticity of demand.
3. For a commodity AP/P= -0.2, and elasticity of demand =-0.6. Find percentage change in quantity demanded.
4. A consumer spends Rs.1500 on a good priced at Rs.10 per unit. When price rises by 20%, the consumer continues to spend Rs. 1500 on the good. Calculate price elasticity of demand by percentage method?
5. On December 2014, the following news was printed in the economic times "Narrow petrol diesel price gap in higher price of diesel cars alter the buyers Preference" Explain this statement linking it to the concept of elasticity of demand?