Suppose demand schedule is given as follows: (i) Find the elasticity for the fall in price from Rs. 80 to Rs 60.

Question

Suppose demand schedule is given as follows:

Price (in Rs.)	100	80	60	40	20	0
Quantity	100	200	300	400	500	600

(i) Find the elasticity for the fall in price from Rs. 80 to Rs 60.
(ii) Calculate the elasticity for the increase in price from Rs. 60 to Rs 80.

Answer 1

(i) When the price fall is from Rs 80 to Rs 60, the demanded quantity of the product increases from 200 to 300. Hence, here : P = 60, ∆P = 20, Q = 300, ∆Q = 100

(ii) When the price increases from Rs 60 to Rs 80, the demanded quantity of the product decreases from 300 to 200. Hence, here P = 80, ∆P = 20, Q = 200, ∆Q = 100