A consumer busy 40 units of a commodity at a price of Rs. 5 per unit and his price elasticity of demand is (-) 1.5 . Calculate the amount he will buy at the amount he will buy at the price of 4 per unit of the commodity.

Explanation

`E_(P)=(P)/(Q)xx(DeltaQ)/(DeltaP)`
`(-)1.5=(5)/(40)xx(DeltaQ)/(-1)`
`DeltaQ=12`
New `Q=Q+DeltaQ=40+12=52` units .
Note : In this problem , we have taken minus sing into consideration both in case of `E_(P) and DeltaP`.