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.

Answer

$\text{Given } \triangle{\text{P}}=-2, \triangle{\text{Q}}=10, {\text{P}}=10$

$\text{e}= \frac{\triangle{\text{Q}}}{\triangle{\text{P}}}\times\frac{\text{P}}{\text{Q}}$

$-1=\frac{10}{-2}\times\frac{10}{\text{Q}}$

$\text{Q}=50 {\text{ units.}}$

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