The demand curve for the commondity is given as `D_(x)=20 -2P`. If slope of the demand curve is (-2), calculate price elasticity of demand for the commodity when the price of the commodity is ₹5 per unit.

Explanation

`D_(x) = 20 - 2P` putting the value of price (i.e ₹5) we get `D_(x)=20-2xx5= 10` units
Elasticirty of Demand `(E_(d))= (DeltaQ)/(deltaP)xxP/Q or 1/("Slope of Demand Curve")xxP/Q `
Elasticity of Demand `(E_(d))= 1/(-2)xx5/10 = (-) 0.25`