Price elasticity of demand for a commodity is unity and a household demands 50 units of it when its price is rupees 2 per unit. At what price will the household demands 45 units of the commodity?

If the demand of the commodity changes at faster rates than the change in the price of the commodity,the demand of the commodity will be known as elastic (or relatively...

Cross price elasticity of demand measures how much demand of one good, say x changes when the price of another good, say y changes, holding everything else constant. For example,...

the price elasticity is very important, especially in the implementation of government taxes. And the main feature is the price elasticity decreasing demand for goods subject to a price increase...

If a decrease in price from R50 to R40 causes the quantity demanded to increase from 2500 to 3000 units, then using the arc elasticity of demand, the price elasticity...

1) PED = (% change in quantity demanded) / (% change in price) = = ((3000-2500)/2500) / ((40-50)/50) = -1

E_d^p=((Q2-Q1)/((Q2+Q1)/2))/((P2-P1)/((P2+P1)/2))=((3000-2500)/((3000+2500)/2))/((40-50)/((40+50)/2))=0.18/(-0.22)=-0.82

 How has the size of the price rise been affected by the price elasticity of demand for Brazil nuts?The price elasticity of demand for the Brazilian nuts can be described...

substitues for the product: better substitutes, the more elastic-proportion of expenditures on specified good relative to income: the larger the expenditure on the specific good relative to ones budget, the...

Given:Price of the commodity B rises by 10%Total revenue received by firms that sell commodity B rises by 5%Demand =?When the price of commodity B rises by 10%, the total...

If the demand of the commodity is elastic, then the increase in price will decrease total revenue and vice versa. If the demand of the commodity is inelastic, then the...