# When Price of a Commodity Falls by Rs 1 per Unit, Its Quantity Demanded Rises by 3 Units. Its Price Elasticity of Demand is (−) 2. Calculate Its Quantity Demanded If the Pric - Economics

When price of a commodity falls by Rs 1 per unit, its quantity demanded rises by 3 units. Its price elasticity of demand is (−) 2. Calculate its quantity demanded if the price before the change was Rs 10 per unit.

#### Solution

Initial Price (P)=Rs 10

Initial Qunatity (q)=x

ΔP=-1

Δq=3

E_d=(-)2

E_d= (Δq)/(Δp)xxp/q

Or,-2=3/-1xx10/x

Or,x=15 "units(Initial Quantity Demanded)"

Concept: Factors Affecting Price Elasticity of Demand
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