IMPORTANCE OF

Ed
1)PRICING DECESION BY BUSINESS FIRM
2)IMPORTANCE IN FISCAL POLICY
3)USE IN INTERNATIONAL TRADE
4)EXPLAINS THE PARADOX OF POVERTY.
5)IN THE DETERMINATION OF WAGES
CALCULATION
OF Ed
1)Percentage method
2)Expenditure method
3)Point method
4)Arc method
IMPORTANCE OF
Ed
A CONSUMER PURCHASED 10
UNITS OF A COMMODITY WHEN
ITS PRICE WAS RS.5/UNIT.HE
PURCHASED 12 UNITS OF A
COMMODITY WHEN ITS PRICE
FALLS TO RS.4/UNIT.WHAT IS THE
PRICE ELASTICITY OF DEMAND
FOR THE COMMODITY AT THAT
PRICE?
IMPORTANCE OF
Ed
PRICE OF A COMMODITY FALLS FROM
RS.4 TO RS.3/UNIT.AS A RESULT TOTAL
EXPENDITURE ON IT RISES FROM
RS.200 TO RS.300.FIND OUT PRICE
ELASTICITY OF DEMAND BY % METHOD.
IMPORTANCE OF
Ed
THE PRICE ELASTICITY OF DEMAND
FOR GOOD X IS KNOWN TO BE TWICE
THAT OF GOOD Y.PRICE OF X FALLS BY
5% WHILE THAT OF GOOD Y RISES BY
5%.WHAT IS THE % CHANGE IN
QUANTITIES OF X AND Y?
 THAT’S IT
THANKS FOR
BEING ATTENTIVE.