These slides are really important and useful for those who wants to practice the numerical of Elasticity of Demand. If u want more of these you can visit to my YouTube channel also.

3. If price of an article decreases from P
1 to Rs 25, quantity demanded increa
ses from 900 units to 1200 units. If po
int elasticity of demand is 2 find P1
Options:
1) Rs. 20 2) Rs. 30
3) Rs. 35 4) Rs. 15

4. Given Information
P1 = ? Q1= 900 Units
P2 = Rs. 25 Q2= 1200 Units
Elasticity of Demand (ED) = -2

5. Formula
Δ Q P
Ed= ----------- x -------
Δ P Q
Δ Q = Q2 – Q1 => 1200 – 900 = 300 units
Δ P = P2 – P1 => 25 – P1
300 P1
- 2 = -------- x -----
25-P1 900
P1
-2 = -----------
(25-P1) x 3
-6 x (25- P1) = P1
-150 + 6 P1 = P1
5 P1 = 150
150
P1= -------- = Rs. 30
5

6. If price of an article decreases fro
m P1 to Rs 25, quantity demande
d increases from 900 units to 120
0 units. If point elasticity of dema
nd is 2 find P1
Options:
1) Rs. 20 2) Rs. 30
3) Rs. 35 4) Rs. 15

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