From the following table, calculate price elasticity of demand by the percentage-change method.
Price of X (Rs. per unit) Total Expenditure (Rs.)
$4$
$5$ $600$
$525$

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Solution

Price of X (Rs. per unit) Total Expenditure (Rs.) Demand (Units)
$4$
$5$ $600$
$525$ $\frac{600}{4} = 150$
$\frac{525}{5} = 105$

Here, $P = R s . 4$ ; $P_{1} = R s . 5;$
$△ P = P_{1} - P$ = $R s . 5 - R s . 4$ = $R s . 1$
$Q = 150$ units; $Q_{1} = 105$ units; $
$△ Q = Q_{1} - Q$ = $(105 - 150)$ units $= (-) 45$ units
Price elasticity of demand $(E_{d}) = (-) \frac{P}{Q} \times \frac{△ Q}{△ P}$
$= (-) \frac{4}{150} \times \frac{- 45}{1} = 1.2$
Price elasticity of demand $= 1.2$

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Price of X (Rs. per unit)	Total Expenditure (Rs.)
$4$ $5$	$600$ $525$

Price of X (Rs. per unit)	Total Expenditure (Rs.)	Demand (Units)
$4$ $5$	$600$ $525$	$\frac{600}{4} = 150$ $\frac{525}{5} = 105$

From the following table, calculate price elasticity of demand by the percentage-change method.Price of X (Rs. per unit)Total Expenditure (Rs.)45600525

From the following table, calculate price elasticity of demand by the percentage-change method.
Price of X (Rs. per unit) Total Expenditure (Rs.)
$4$
$5$ $600$
$525$