Topic –Consumers Behaviour and Demand
Date of submission: 20.07.2009
- What are the different methods employed for measuring elasticity of demand?
- Calculate the price elasticity of demand using total expenditure method.
|Price (Rs.)||Total Expenditure (Rs.)|
- When the price of a good falls from Rs. 10 per unit to Rs. 9 per unit, its demand rises from 9 units to 10 units. Compare expenditure on the good to find price elasticity of demand.
- A consumer buys 80 units of a good at a price of Rs.5 per unit. Suppose the price elasticity of demand is (-)2. At what price he will buy 64 units?
- When price of a good falls from Rs.5 to Rs.3 per unit, its demand rises by 40%. Calculate its price elasticity of demand.