The Demand Function for a commodity is given by P = 1200/Q
Calculate Price Elasticity of Demand at Price = ₹5 per unit????

Dear Student,

We have the given demand function as:P = 1200Q  PQ = 1200Now, PQ = Price × Quantity = Total Expenditure, and according to the given demand function, Total Expenditure remains constant at 1200, irrespective of the price of the commodity.Since, total expenditure is unchanged even when price changes, the Price Elasticity of Demand = -1

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