A consumer buys 18 units of a good a price of Rs 9 per unit the elasticity of demand for the good is one how many units the consumer will buy at the price of Rs 10 per unit calculate

Dear Student


Second explanation to this can be as follows
As Price elasticity of demand here is = 0, which means total expenditure remains contant
Current expenditure = Current no. of units X Current price per unit
                                 = 18 X 9
                                 = Rs. 162
As Expenditure Should be same 
Therefore, New quantity will be - 
Expenditure = New Quantity to be purchased X Price per unit
           162   = New Quantity to be purchased X 10
            162  = New Quantity to be purchased
           New Quantity to be purchased = 16 units ( as answer is 16.2 , but units can not be in decimals so it is to be rounded off.)

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