The %increase in price= (7-5)/5x100= 40%
The %decrease in quantity=(25-15)/25 x 100= 40%
Elasticity=40/40=1,unit elasticity.
To calculate the percentage increase in price, you can use the formula:
% Increase in price = ((New Price - Original Price) / Original Price) x 100
In this case, the new price is 7 and the original price is 5. Plugging these values into the formula, we get:
% Increase in price = ((7 - 5) / 5) x 100 = 2/5 x 100 = 0.4 x 100 = 40%
So, the percentage increase in price is 40%.
To calculate the percentage decrease in quantity, you can use a similar formula:
% Decrease in quantity = ((Original Quantity - New Quantity) / Original Quantity) x 100
In this case, the original quantity is 25 and the new quantity is 15. Plugging these values into the formula, we get:
% Decrease in quantity = ((25 - 15) / 25) x 100 = 10/25 x 100 = 0.4 x 100 = 40%
So, the percentage decrease in quantity is also 40%.
To calculate the elasticity, you can divide the percentage change in quantity by the percentage change in price:
Elasticity = % Change in quantity / % Change in price
In this case, the percentage change in quantity is 40% and the percentage change in price is also 40%. Plugging these values into the formula, we get:
Elasticity = 40% / 40% = 1
Therefore, the elasticity is 1, which indicates unit elasticity.