the demand fxn of good-x is Qx = 20-2px... Calculate PeD of demand when price falls from 5 to 3 ??

 initial demand =20-2x5=10  new demand =20-2x3=14

inital price=5  new price =3  

Ed. = Percentage change in quantity demanded/ Percentage change in price 

Ed. = P/q X ∆q/∆p 

P = Original price 

Q = Original quantity 

∆ = Change 

change in quantity =new -initial quantity =14-10=4                      

change in price =new -initial =3-5=-2

Ed =(-) 4/10 x 5 /-2 = 1  ans

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  what is fxn ?

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