Re: micro

Posted by duck on Sep 10, 2011; 3:53am
URL: http://discussion-forum.276.s1.nabble.com/micro-tp6772616p6778051.html

Hi Divya.. :)
We were making mistake.
Sorry, we do not calculate % change like this.

First, find out % change in quantity demanded which is 17.3% (this is correct)
Now, just assume some initial value of P and Q and then, find new price(P') and new quantity(Q')
[by looking at the % change in price and % change in quantity demanded]
Find initial Revenue= PQ
Then, find New revenue = P'Q'
And then, finally you will get the % change is Revenue = {(P'Q' - PQ)*100}/PQ