the market demand for good at rs 4 per unit is 100 units. the price rises and asa a result its market demand falls to 75. find out the new price if the price elasticity of demand is negative 1.

price= rs4

new price= x

demand=100

new demand= 75

change in market deamnd= 100-75= 25

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

                                   1= 25/4-x*4/100 

                                   x = 3

=> new price is 4+x= 4+3= 7