1. If price of an article decreases from Rs 800 to Rs 700, quantity demanded increases from Q1 units to 70 units. If point elasticity of demand is -1.333 find Q1?





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  • By: anil on 05 May 2019 02.11 am
    Point price elasticity of demand = (Change in quantity / Change in price) -1.33 = $$frac{(70 - Q1) / Q1}{(-100 / 800)}$$ 560 - 8Q1= 1.33Q1 560 = 9.33Q1 Q1 = 60.02 Hence, option C is the correct answer.
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