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If ratio of Change in quantity (DeltaQ)...

If ratio of Change in quantity `(DeltaQ)` to original quantity Q is 0.5 and elasticity of demand is (-) 1.25, calculate the percentage change in price.

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Given: `(DeltaQ)/Q= 0.5` (Positive Value indicated that quantity has increased. It means , new price is less than the original price, i.e price has decreased.)
Percentage Change in Demand = `(DeltaQ)/Q xx 100 = 0.5 xx 100 = 50 %`
price Elasticity of Demand `(E_(d)) = ("percentage change in Quantity Demanded")/(" Percentage change in price ")`
`(-) 1.25 = (50%)/("Percentage change in price ")`
Percentage change (fall) in price = 40 %
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