Answer:
Given, Percentage change in price =10%, Initial Quantity (Q) = 500 units New Quantity = 400 units Change in Quantity \[(\Delta Q)=400-500=-100\,\,units\] \[\therefore \] Percentage change in quantity demanded \[=\frac{\Delta Q}{Q}\times 100=-\frac{100}{500}=-20%\] \[{{E}_{d}}=(-)\frac{Percentage\,Change\,inQuantity\,Demanded}{Percentage\,Change\,in\,\Pr ice}\] \[=(-)\frac{-20%}{10%}=\frac{20%}{10%}=2\] \[{{E}_{d=}}2\,\,[{{E}_{d.}}>1,\,\,ElasticDemand]\]
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