Applied Economics - Old Questions
Question Answer Details
4. a) A consumer buys 80 units of a goods at a price of Rs.4 per unit. When the price falls, he buys 100 units. If the price elasticity of demand is -1, find out the new price of the goods.
b) Price elasticity of supply of a good is 5. A producer sells 500 units of this good at Rs.5 per unit. How much will sell at the price of Rs.6 per unit?