Question
When price of a commodity falls by Re. 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.
$\text{e}=\frac{\triangle{\text{Q}}}{\triangle{\text{P}}}\times\frac{\text{P}}{\text{Q}}$
$=-2=\frac{3}{-1}\times\frac{10}{\text{Q}}$
$\text{Q}=15\text{ units.}$
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