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A consumer buys 20 units of a good at a ...

A consumer buys 20 units of a good at a price of ₹5 per units. He incurs an expenditurs of ₹ 120 , when he buys 24 units. Calculate price elasticity of demand using the percentage method. Comment upon the likely shape of demand curve based on this information.

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The correct Answer is:
Price elasticity of demand `(E_(d))`= Infinity: As demand is perfectly elastic, demand curve will be horizontal straight line parallel to X-axis)
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SANDEEP GARG-ELASTICITY OF DEMAND-Unsolved practicals
  1. When price of a good is ₹ 13 per unit the consumer buys 11 units of t...

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  2. The price elasticity of demand of a commodity is -0.5 . At a price of ...

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  3. A consumer buys 20 units of a good at a price of ₹5 per units. He inc...

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  4. The price of commodity is ₹ 20 per unit and total expenditure on it ...

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  5. The price elasticity of demand of X is (-) 1.25. its price falls from ...

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  6. The price elasticity of demand for a good is -0.4 if its price increas...

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  7. The demand for good rises by 20 percent as a result of fall in its pr...

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  8. A 5 per cent fall in the price of a good raises its demand from 300 un...

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  9. Price of a good rises from ₹ 7 per unit to ₹ 9 per unit but its dema...

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  10. price elasticity of demand of a good is -0.75. calculate the percentag...

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  11. Price of a good rises by per cent but there is no effect on demand of ...

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  12. A consumer spends ₹ 2,000 on a good priced at ₹ 8 per unit. Wgeb oruce...

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  13. A consumer buys 18 units of a good at a price of ₹ 9 per unit. The pr...

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  14. Price elasticity of demand of a good is (-) 1. when its price per un...

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  15. A consumer buys 30 units of a good at a price of ₹ 10 per unit. Price ...

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  16. When price of a good falls from ₹ 15 per unit to ₹ 12 per unit. Its d...

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  17. Price elasticity of demand of a good is (-)1. calculate the percentag...

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  18. Price elasticity of demand of two good A and B (-) 3 and (-)4 erspecti...

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  19. The quantity demanded of a good is 1,500 units at the price of ₹ 10 p...

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  20. The price elasticity of demand of a good is (-) 0.5. At a price fo ₹ 2...

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