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प्रश्न
Given the following demand schedule:
| Price (₹) | Quantity (units) |
| 60 | 10 |
| 50 | 12 |
What would be the price elasticity of demand when the price falls from ₹ 60 to ₹ 50?
पर्याय
ep > 1
ep = 1
ep < 1
ep = 0
MCQ
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उत्तर
ep = 1
Explanation:
When a given percentage change in the price of a commodity causes an equivalent percentage change in the quantity demanded, then the elasticity of demand is said to be unitary (or one).
ep = `"Percentage change in quantity demanded"/"Percentage change in price"`
Percentage change in quantity = `(12-10)/10xx100`
= `2/10xx100`
= 20%
Price changes from ₹ 60 to ₹ 50
Percentage change in price = `(60-50)/60xx100`
= `10/60xx100`
= 16.67%
Price elasticity of demand = `(20%)/(16.67%)` = 1.2
The price elasticity of demand is approximately 1.2.
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