The demand for a good is 300 units at ₹ 20 if price rises by ₹2 and demand falls, find the new demand, if `e_(D)` is 2.

Explanation

`{:(P" "20),(P_(1)" "22),(overlineunderline(DeltaP" "2)):}" "{:(Q" "300),(Q_(1)" "?),(overlineunderline(DeltaQ" "?)):}`
`P.e_(D)= P/Qxx(DeltaQ)/ (DeltaP)`
`(-)2= 20/300xx(DeltaQ)/2 `
`DeltaQ=60 or DeltaQ=Q_(1)-Q`
`-60=Q_(1)-300`
` -60+300= Q_(1) or Q_(1)= 240`