Comment upon the degree of elasticty of demand for Good X, in the following given situation, if the price of the commodity rises from ₹5 per unit to ₹ 7 per unit and the quantity demand falls from 20 units to 16 units using proportionate method.

Explanation

`{:(P" "5),(P_(1)" "7),(overlineunderline(DeltaP=2)):}" "{:(Q=20),(Q_(1)=16),(overlineunderline(DeltaQ=-4)):}`
` P.e_(D)= P/Qxx(DeltaQ)/(DeltaP)= 5/20xx (-4)/2= (-1)/2= (-)0.5`
`|P.e_(D)|` = 0.5 ( Less than unitary elastic demand)