(a) Arrange the following coeffcients of price elasticy of demand in ascending order:
- 0.87, 0.53, -3.1,-0.80 ,
(b) Comment upon the degree of elasticity of demand for commodity X, if the price of the commodity falls from ₹ 28 per unit to ₹ 23 per unit and its quantity demanded rises from 50 units to 100 units.

Explanation

(a) -0.53, 0.80, -0.87, -3.1
(negative sign only represents inverse relation between inverse relation between price and quantity demanded, hence absolute values of `P.e_(D)` to be arranged).
`{:(P" "28),(P_(1)" "23),(overlineunderline(DeltaP=(-)5)):}" "{:(Q=50),(Q_(1)=100),(overlineunderline(DeltaQ=50)):}`
` P.e_(D) =P/Qxx (DeltaQ)/ (DeltaP)`
`28/50xx 50/(-5) = 28/(-5) = (-)5.6`
`|P.e_(D)|= 5.6` ( Greater than unitary elastic demand)