Please answer no. 77 and 78

Please answer no. 77 and 78 4.40 men price of commodity A falls from 10 to 5 per unit, its quantity demanded doubles. dasticity of demand. At What price will its quantity demanded fall by 50 percent? Etastcity of Oetnand 77. Due to 10 percent fall in the price of X. its demand rises from 100 units to 120 units. How percentage will its demand fall due to 10 percent rise in its price? 78. When price of a good falls by 50 percent, its demand rises by 60 percent. Calculate its price elast. demand. price of a good falls from 10 per unit to 7 per unit, quantity demanded of the good rises trm 100 to 160 units. Calculate its price elasticity of demand.

Dear student,
77. Given,
% change in price = (-)10
initial quantity demanded= 100 units
final quantity demanded= 120 units
so, change in quantity demanded= final quantity demanded-initial quantity demanded= 120-100=20 units
% change in quantity demanded= change in quantity demanded/initial quantity demanded*100= 20/100*100=20

Price Elasticity of Demand (PED) = % change in quantity demanded / % change in price
SO, PED= 20/(-)10= -2
If, % change in price = 10
PED= -2 (
calculated above)
then,% change in quantity demanded= PED * % change in price= -2*10= -20 (negative sign shows fall in quantity)
So, 10% rise in price will lead to 20% fall in quantity demanded.
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 78. Given,
% change in quantity demanded = 60
% change in price = (-)50

Price Elasticity of Demand (PED) = % change in quantity demanded / % change in price
SO, PED= 60/(-)50= -1.2
Since PED is less than 1, percentage of change in demand is more than the percentage of change in price, it means the demand is elastic. (The negative sign only shows the inverse relation between price and demand).

Regards
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