question_answer

When price of a good is Rs. 13 per unity the consumer buys 11 units of that good. When price rises to Rs. 15 per unit, the consumer continues to buy 11 units. Calculate price elasticity of demand.

Answer:

Given,
P	Q
13	11
15	11
\[\Delta P=(15-13)=2\] and \[\Delta Q=(11-11)=0\]
Now,     \[{{E}_{d}}=\frac{\Delta Q}{\Delta P}\,\,\times \,\,\frac{P}{Q}\]
Substituting the values
\[{{E}_{d}}=\frac{0}{2}\,\,\times \,\,\frac{13}{11}=0\]
Hence, demand is Perfectly Inelastic.