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Price elasticity of demand for a product...

Price elasticity of demand for a product is 'unity'. A houseshold buys 25 units of this product at the price of ₹ 5 per unit. If the price of product rises by ₹ 1, how much quantity of the product will the household buy ?

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The correct Answer is:
New Quantity = 20 units
Price Elasticity of demand `(E_(d)) = (DeltaQ)/(DeltaP)xxP/Q 1=(DeltaQ)/(1)xx5/25 i.e. DeltaQ= 5units`
As price is decreasing, the quantity demanded will increase, it means
New Quantity = Original Quantity (Q) - Change in Quantity `(DeltaQ)` = 25-5 = 20 units
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