Question

1 point

if the price decreases from Rs
10 to Rs 8 of a commodity but
the quantity demanded
remains the same , price
elasticity is *
one
O zero
O infinity
O none of these​

Answer 1

PED = 0

Step-by-step explanation:

The PED or price elasticity of demand is a measure to track and determine the responsiveness of quantity demanded to changes in price of the commodity. The PED is calculated using the following formula,

PED = % Change in Quantity demanded / % Change in Price

or

PED = [( Q1 - Q0 ) / Q0] / [( P1 - P0 ) / P0]

Lets assume that at price 10 the quantity demanded was also 10 and when price decreased to 8, the quantity demanded remained the same i.e. 10

So,

PED = [( 10 - 10 ) / 10] / [( 8 - 10 ) / 10]

PED = 0

Thus, the price elasticity of demand is zero.

Answer 2

O zero

Step-by-step explanation:

Elasticity of demand is defined as the rate of change of quantity of a good demanded with change in price.

Commodities with low elasticity change a little with change in price, while those with high elasticity have a large change with change in price.

The formula for price elasticity is

Elasticity of demand = (% change in quantity demanded) ÷ (% change in price)

Assume the demand is 10 units

Elasticity of demand = ({10 - 10} ÷ 10 * 100) ÷ ({8 - 10} ÷ 10 * 100)

Elasticity of demand = (0) ÷ (-20)

Elasticity of demand = 0