What will be the effect of 10% rise in price of a food in its demand if price elasticity of demand is (a)zerom, (b) (-)1, © (-) 2 ?

Explanation

` P.e_(d)= (%DeltaQ_(x))/(%DeltaP_(x))`
(a) when `P.e_(d)` is zero
`Zero= (%DeltaQ)/(+10%)`
`%DeltaQ`= zero or No change in demand.
(b) when `P.e_(d)` is (-)1
`-1=(%DeltaQ)/(+10%)`
`%DeltaQ= (-)10%` or 10% fall in demand.
(c) When `P.e_(d)` is (-)2
`-2=(%DeltaQ)/(+10%)`
`%DeltaQ=(-)20%` or 20% fall in demand