For a commodity. $△ P / P = - 0.2$ , and elasticity of demand $= - 0.3$ . Find percentage change in quantity demanded.

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Solution

Percentage change in price $= \frac{△ P}{P} \times 100 = - 0.2 \times 100 = (-) 20 %$
Elasticity of demand $(E_{d}) = \frac{△ Percentage change in quantity demanded}{Percentage change in price}$
$- 0.3 = \frac{Percentage change in quantity demanded}{- 20 %}$
Percentage change in quantity demanded $= 0.3 \times - 20$ per cent $= 6 p e r c e n t$
Percentage change in quantity demanded $= 6 %$ .

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For a commodity. △P/P=−0.2, and elasticity of demand =−0.3. Find percentage change in quantity demanded.

For a commodity. $△ P / P = - 0.2$ , and elasticity of demand $= - 0.3$ . Find percentage change in quantity demanded.