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When price of a good falls by 10 percent...

When price of a good falls by 10 percent , its quantity demanded rises from 40 units to 50 units. Calculate price elasticity of demand by the percentage method.

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`E_(P)=(%" change in Qty . Demanded")/(% " change in price")=((10)/(40)xx10)/(-10)=(25)/(-10)=(-)2.5`
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SK AGGARWALA-PRICE ELASTICITY OF DEMAND-SOME IMPORTANT QUESTIONS
  1. What is meant by price elasticity of demand ?

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  2. Explain the expenditure method of measuring price elasticity of demand...

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  3. Mention any three factors that affect the price elasticity of demand o...

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  4. Give meaning of perfectly elastic demand and perfectly inelastic deman...

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  5. Price elasticity of demand of a good is (-) 2. At a price of Rs. 10 pe...

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  6. At a price of Rs. 50 per unit the quantity demanded of a commodity is ...

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  7. When price of a good falls by 10 percent , its quantity demanded rises...

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  8. The quantity demanded of a commodity rises from 800 units to 850 unit...

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  9. Price elasticity of demand of a good is (-) 1. At a given price the co...

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  10. Price elasticity of demand of a good is (-)2. The consumer buys a cert...

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  11. Why is demand for water inelastic ?

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  12. On the basis of the following schedule , calculate price elasticity of...

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  13. When price of a good is Rs. 13 per units , the consumer buys 11 units ...

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  14. When price of a good is Rs. 7 per unit a consumer busy 12 units . When...

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  15. When price of a priduct doubles , its demad falls to half of what it w...

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  16. Price elasticity of demand of a good is (-)1 . When its price falls by...

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  17. When price of a good falls from Rs. 15 per unit to Rs. 12 per unit , i...

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  18. Price elasticity of demand of a good is (-)1 . Calculate the percentag...

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  19. Price elasticity of demand of two good A and B (-) 3 and (-)4 erspecti...

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  20. What will be the effect of 10 percent rise in price of a good on its d...

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