Q 1: If price of a commodity rises from Rs 8 to Rs 10 per unit and its demand falls

by 50%. What is the price elasticity of demand?

Price Quantity Demanded

8 50% fall in demand

10

You can observe that the law of demand is still applicable, as the price increases,
the quantity demanded decreases.

Q 2: Due to a 10% fall in the price of a commodity, the demand rises from 100
units to 120 units. How much percentages will its demand fall, due to a 10% rise in
its price?

Q 3: A consumer spends Rs 100 on a good priced at Rs 4/unit. When its price falls
by 50%, the consumer continues to spend Rs 100 on that good. Calculate the Price
elasticity of demand.

Q4: here is a 50% fall in the price of the commodity. But the quantity demanded
remains to be 150 units. Find elasticity of demand.

Q 5: At a certain price of the commodity quantity purchased is 150 units. When the
price falls by 25%, the quantity purchased increases by 75 units. Find elasticity of
demand