the price elasticity of a commodity y is half the p elasticity of commodity x 16% rise in the price - Economics - Production and Costs

Question

the price elasticity of a commodity y is half the p elasticity of
commodity x 16% rise in the price of x results in an 40% if the
price of y falls by 8% calculate the percentage fall

Shvetika Sharma · Accepted Answer

Dear student,

According to the given information price elasticity of commodity x
can be calculated as follows:

Price elasticity of X = %fall in quantity%rise in price= 4016= 2
5So, price elasticity of commodity y = 2
52=1
25Now, as per the information given for commodity Y, 1
25 = % fall in quantity8So, % fall in quantity =10

the price elasticity of a commodity y is half the p elasticity of commodity x 16% rise in the price of x results in an 40% . if the price of y falls by 8% . calculate the percentage fall .