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If the price drops from 10 yuan to 8 yuan and the quantity of demand increases from 1000 to 1200, what is the price elasticity of demand? Solve.
Elasticity of demand price: indicates the degree to which the demand change of a commodity responds to the price change of the commodity in a certain period. In other words, it represents the percentage of change in demand for a commodity caused by one percent price change in a certain period. Ed=(△Q/Q0 )/(△P/P0), that is, the ratio of the percentage change of demand to the percentage change of price. Percentage of demand change: (1200-1000)/1000 *100% = 20%. The change rate of demand is (1200-1000)/1200 =1/6; Elasticity = (1/4)/(1/6) =1.5.

1. Ratio of variable cost to sales revenue. It represents the share of variable cost in every yuan of sales revenue. ... refers to the ratio of total variable cost to total sales revenue, or the ratio of unit variable cost to unit sales price. Demand percentage: after the change, subtract the demand before the change, then divide it by the demand before the change, and finally get the percentage.

2. Elasticity is a personal capital put forward by alfred marshall, which refers to the property that one variable changes in proportion to another. The concept of elasticity can be applied to all variables with causality. The variable as the cause is usually called the independent variable, and the quantity changed by it is called the dependent variable. For example, there is a relationship y = f(x) between the independent variable x and the dependent variable y, then the x elasticity of y: ey/ex = (△ y/y)/(△ x/x) = f' (x) x/y.

3. Economics is a discipline that studies all kinds of economic activities and corresponding economic relations of human society at various stages of development and their operation and development laws. The core idea of economics is the scarcity of materials and the effective utilization of resources, which can be divided into two main branches, microeconomics and macroeconomics.

4. The object of economics reflects the essence and laws of human economic activities. Social and economic development mainly creates value through the subject, and the dynamic balance process from asymmetry to symmetry between subject and object is the fundamental driving force of social and economic development.