if E_d = - 0.2 and delta p / p = 0.6, find new expenditure if initially it was RS. 1,000.

i wait responce on expert

1408 is the coorect answer

percentage change in price =ΔP/px100 = 0.6x100=60%

percentage change in quantity demanded = -0.2x60%= -12%

let the initial price=100 rs and initial quantity = 100units

when price increases by 60% new price =100rs +60rs =160 rs

when quantity demanded reduces by 12% new quantity ={100-12} =88 units

new expenditure = new price xnew demand /old expenditure xinitial expenditure

= 160 x 88 / 10000 x1000 =1408 ans