A 5% in price of x causes 10 % rise in demand for x. A 20% rise in price of y leads to 5% fall in demand for y. calculate `P.e_(D)` for x and y. which is more elastic ?

Explanation

`P.e_(D) of 'x' = ("% Change in" QD_(x))/("% change in " P_(x))= (+10%)/ ((-)5%)=-2`
`|p.e_(D)|` 2 for x
2. `P.e_(D) of 'y' = (" % Change in " QD_(y))/ ("% change in" P_(y))=((-)5%)/(+20%)= (-) 0.2`
`|P.e_(D)|=0.25`
`P.e_(D)` of x=2 , `P.e_(D)` of y = 0.25 , x is more elastic as compared to y.