The demand schedule for bread is given below

Price of Bread (Rs per packet)Quantity Demanded (per month)

Calculate the price elasticity of demand and determine the type of price elasticity.

P= 23
Q = 100
P1= 23.04
Q1 =70
Therefore, change in the price of milk is:
DP = P1 – P
DP = 23.04 – 23
DP = 0.04
A change of Rs. 0.04 is a negligible change; thus, can be considered as zero.

Similarly, change in quantity demanded of bread is:

In the above calculation, a change in demand shows a negative sign, which is ignored. This is because price and demand are inversely related which can yield a negative value of demand (or price). Price elasticity of demand for bread is:
Homework solution

The price elasticity of demand for bread is ∞. Therefore, in such a case, the demand for bread is perfectly elastic.