THE DEMAND FOR DOUBLES DUE TO 25% FALL IN PRICE.CALCULATE ITS PRICE ELASTICITY OF DEMAND. PLZZZ ANSWER AS SOON AS POSSIBLE.

demand doubles = 100 % change in demand

(if initial quantity demanded = x then new quantity = 2x

% change in demand = Δ Q / Q * 100 = x / x * 100

= 100 % )

% change in price = 25 %

elasticity of demand = % change in demand / % change in price

= 100 / 25

elasticity of demand = 4

therefore more elsatic demand