Calculate the ` P.e_(D)` for a commodity when its price increases by 25% and quantity demanded falls from 150 units to 120 units.

Explanation

`{:("Original Quantity (Q) = 150 units","% Change in Price "=25%),("New Quantity "(Q_(1))=120" units","Elasticity of Demand (ED) = ?"),("Change in Quantity "(Delta Q)=-30" units",):}`
Percentage change in demand `=(Delta Q)/(Q)xx100=(-30)/(150)xx100=-20%`
Price Elasticity of Demand `(ED)=("% Change in quantity demanded")/("% Change in price")=(-20%)/(25%)`
Price Elasticity of Demand (ED)`=(-)0.8`
ED `=(-)0.8`, Demand is less elastic because `ED lt 1`.