Given, percentage change in quantity demanded =(−)20%
P=Rs.10;P1=Rs.12;△P=P1−P=Rs.12−Rs.10=Rs.2
=210×100=20%
Price elasticity of demand (Ed)=(−)Percentage change in quantity demandedPercentage change in price
=(−)−20%20%=1
If the price rises from Rs.10 per unit to Rs.13 per unit.
Ed=1
P=Rs.10;P1=Rs.13;△P=P1−P=Rs.13−Rs.10=Rs.3
Percentage change in price =△PP×100
=310×100
=30%
Price elasticity of demand (Ed)=(−)Percentage change in quantity demandedPercentage change in price
1=(−)Percentage change in quantity demanded30%
Percentage change in quantity demanded =(−)30%
Price elasticity of demand =1.
Percentage fall in quantity demanded =30%.