Let Qx=1400/Px,now calculate:-

1.total expd on good x when Px from Rs.6 to Rs 1

2.derive the value of Ed

3.what shape will the demand curve take.?



This means that Total expenditure will remain constant. In other words, change in price only affects the quantity and not the expenditure. 


ParticularsOriginal ValueNew ValueChange in value
Quantity ()233.3314001166.67


Therefore, elasticity of demand is equal to -6.

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