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Standard VIII

Mathematics

Commission and Brokerage

A consumer bu...

Question

A consumer buys $30$ units of a good at a price of $R s . 10$ per unit. Price elasticity of demand for the good is $(-) 1$ . How many units the consumer will buy at a price of $R s . 9$ per unit? Calculate.

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Solution

Given, $P = R s . 10; P_{1} = R s . 9; △ P = P_{1} - P = R s . 9 - R s . 10 = (-) R s . 1$
$Q = 30 u n i t s; Q_{1} = ?$
$E_{d} = (-) 1$
Price elasticity of demand $(E_{d}) = \frac{P}{Q} \times \frac{△ Q}{△ P}$
$- 1 = \frac{10}{30} \times \frac{△ Q}{- 1}$
$△ Q = 3$
Now, $△ Q = Q_{1} - Q$
$3 = Q_{1} - 30$
$Q_{1} = 30 + 3 = 33$ .
Consumer will buy $33$ units at a price of $R s . 9$ per unit.

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A consumer buys 30 units of a good at a price of Rs.10 per unit. Price elasticity of demand for the good is (−)1. How many units the consumer will buy at a price of Rs.9 per unit? Calculate.

Given, P=Rs.10;P1=Rs.9;△P=P1−P=Rs.9−Rs.10=(−)Rs.1Q=30 units;Q1=?Ed=(−)1Price elasticity of demand (Ed)=PQ×△Q△P−1=1030×△Q−1△Q=3Now, △Q=Q1−Q3=Q1−30Q1=30+3=33.Consumer will buy 33 units at a price of Rs.9 per unit.

A consumer buys $30$ units of a good at a price of $R s . 10$ per unit. Price elasticity of demand for the good is $(-) 1$ . How many units the consumer will buy at a price of $R s . 9$ per unit? Calculate.