1)#Calculate price elasticity as the price increase from Rs.8 to 10 of income is Rs.10,000.
#Calculate elasticity if income increase from Rs.10,000 to Rs.12,000, where price supposed to be Rs.14.
Ans: (-4/5, 5/4)
2)Given demand function: Q=200-20p
i)Complete the price elasticity of demand at P=Rs.5
ii)Complete the price elasticity of demand at P1=Rs.6 and P2=Rs.8 by arc method.
3)Find cross elasticity of demand between Tea(x) and Coffee(y) and between Tea(x) and sugar(z).