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Theory of consumer behaviour — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsTheory of consumer behaviour4 Marks
Question
When the price of a commodity falls by ₹ $2$ per unit, its quantity demanded increases by $10$ units. Its price elasticity of demand is $(-)1$. Calculate its quantity demanded at the price before change which was ₹ $10$ per unit.
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Answer

$PED = [-]1$ Given
Price before change [Initial Price]$ P = 10$
Initial Quantity $(Q) = ?$
New Price $(P_1) = 8$
New Quantity $(Q_1) = ?$
$\Delta \text{P} = -2$ [Given]
$\Delta \text{Q} = 1$
$\text{PED}=\frac{\Delta\text{Q}}{\Delta\text{P}}\times\frac{\text{P}}{\text{Q}}$
$(-)1=\frac{10}{(-)2}\times\frac{10}{\text{Q}}$
$\text{Q}=\frac{100}{2}=50$
So, the quantity demanded at price before change [P], i.e., $10$, is equal to $50.$

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