The price of a commodity falls from Rupees 50 to Rupees 30 resulting in an increase in the purchase of the commodity from 200 to 220 units. Calculate the price elasticity of demand.
The price elasticity of demand is:
"Ed = \\frac{220 - 200} {30 - 50} \u00d7\\frac{30 + 50} {220 + 200} = -4\/21,"
so the demand is inelastic.
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