when price of sugar is ₹ 5 per Kg, its demand is 50 Kg. when price rises by ₹ 5 per kg, its demand falls by 10 Kg. Calculate the elasticity of demand.

Answer

`E_(d)=(-)0.2` (Demand is Highly elastic as `E_(d) gt 1)`
Negatice sign of `E_(d)` indicates the inverse relationship between price and quantity demanded.

Explanation

price Elasticity of demand `(E_(d))=(DeltaQ)/(DeltaP)xx P/Qxx-10/(5)xx 5/50=(-) 0.2`