Question
When the price of a commodity falls by Rs. 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 Rs. 10 per unit.
$\text{e}= \frac{\triangle{\text{Q}}}{\triangle{\text{P}}}\times\frac{\text{P}}{\text{Q}}$
$-1=\frac{10}{-2}\times\frac{10}{\text{Q}}$
$\text{Q}=50 {\text{ units.}}$
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| (Rs. in crores) | ||
| 1 | Income from property and entrepreneurship was accruing to government administrative deparments. | 500 |
| 2 | Saving of non-departmental public enterprises. | 100 |
| 3 | Corporation tax. | 80 |
| 4 | Income from domestic product accruing to private sector. | 4,500 |
| 5 | Current transfers from government administrative deparments. | 200 |
| 6 | Net factor income from abroad. | (-)50 |
| 7 | Direct personal taxes. | 150 |
| 8 | Indirect tax. | 220 |
| 9 | Current transfers from rest of the world. | 80 |
| 10 | Saving of private corporate sector. | 500 |