Estimated elasticity demand 2.0
With a price fall of 5% how is percentage change in demand calculated
and is there an increase or decrease in demand?

Hello makbool-ga
From
Chapter 5 "Price Elasticity of Demand" page 49 of
"Key Facts Passbook - Economics" by Roger Maile BA
Published 1980 by Intercontinental Book Productions


PED = Proportionate change in Quantity Demanded
           ----------------------------------------------------------------
                          Proportionate change in price

>

so using your figures


PED =        ?
             -----------   = 2
                -5%

>
So by calculation
PED =      10%
              ------------ = 2
                  -5%

This results in an increase in demand of 10%,
if the price drops 5%


I hope that helps
kind regards lot-ga

good that's how I did mine - it matches - thanks