A consumer buys 80 units of a good at a price of Rs. 5/- per unit. Suppose price elasticity of demand is (-)2. At what price will he buy 64 units ? Share with your friends Share 0 Shubham Kalra answered this Dear student, P= price of the good= Rs 5Q= quantity of commodity= 80 unitsQ'= new quantity= 64 unitslet P'=price at which he buys 64 units∆P=P-P'=5-P'∆Q=Q-Q'=80-64= 16 unitsElasticity of demand= (-)2=∆Q∆P×PQ=165-P'×564(-)2×(5-P')=8064-640+128P'=80128P'=640+80P'=720128=Rs 5.625 Regards!! -1 View Full Answer
