#### Question

A consumer buys 18 units of a good at a price of Rs 9 per unit. The price elasticity of demand for the good is (–) 1. How many units the consumer will buy at a price of Rs 10 per unit? Calculate.

#### Solution

Given that

Q_{1}= 18

Q_{2}= ?

P_{1} = Rs9

P_{2} = Rs10

E_{d} = -1

`E_d=(DeltaQ)/Qxxp/(DeltaP)`

`-1=(Q_2-Q_1)/Q_1xxP/(P_2-P_1)`

`-1=((Q_2-18))/18xx9/(10-9)`

`-1=(Q_2-18)/18xx9/1`

-2=Q_{2}-18

-2+18=Q_{2}

Q_{2}=16

Therefore, the consumer will buy 16 units of the good at a price of Rs 10.

Is there an error in this question or solution?

Solution A Consumer Buys 18 Units of a Good at a Price of Rs 9 per Unit. the Price Elasticity of Demand for the Good is (–) 1. How Many Units the Consumer Will Buy at a Price of Rs 10 per Unit? Calculate. Concept: Elasticity of Demand.