Answer on Microeconomics Question for ashwini
P2=2; Q2=10-2*P2=10-2*2=10-4=6; decrease in price ΔP=P2-P1=2-3=-1; decrease in demand ΔQ=Q2-Q1=6-4=2
Elasticity of demand is calculated by E=(P1+P2)*ΔQ/((Q1+Q2)*ΔP)=(3+2)*2/((4+6)*(-1))=-1
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thanks a lot for the answer