Calculate the price elasticity of demand for a commodity when its price increase by 25% and quantity demanded falls from 150 units to units.

Explanation

percentage change in demand = `(DeltaQ)/Q xx 100 =(-30)/150 x100 = -20% `
Price Elasticity of demand `(E_(d)) = (" Percentage change in Quantity demanded")/("percantage change in price") =(-20%)/(25%)`
Price Elasticity of Demand `(E_(d)) = (-) 0.8`