Price elasticity of demand for a commodity is unity and a household demands 50 units of it when its price is Rs 2 per unit. At what price will the household demands 45 units of the commodity?  

Chidaksha,

Given,Ed = 1Q0 = 50 unitsP0 = Rs 2Q1 = 45 unitsP1 = ?Q = Q1 - Q0Q = 45 - 50 = -5 P = P1 - P0P = P1 - 2Ed = (-)QP × P0Q01 = (-)-5P1 - 2 × 250P1 = Rs 2.2

At a price of Rs 2.2, the households will demand 45 units of commodity.

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