The demand schedule for notebooks is given below 40 – 100 and 30 – 100

The demand schedule for notebooks is given below

Price of Notebook (Rs per notebook)Quantity Demanded
40100
30100

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

Solution:

P= 40
Q = 100
P1= 30
Q1 =100
Therefore, a change in the price of notebooks is:

price elasticity homework

In the above calculation, the change in price shows a negative sign, which is ignored. This is because price and demand are inversely related which can yield a negative value of price (or demand). Similarly, a change in quantity demanded of notebooks is:

Solution for price elasticity

The price elasticity of demand for notebook is 0. Therefore, in such a case, the demand for notebook is perfectly inelastic.