Arrange the following to represent the order of events i consumer's b…

The correct answer is option (2) : (B), (C), (A), (D)

The correct order of events in consumer's behaviour due to a change in the price of a commodity is as follows :

1. A consumer demands 2 units of a commodity priced at ₹20 (B) - This represents the initial demand at the original price .

2. There is a fall in the price of the commodity to ₹10 (C) - A price reduction occurs.

3. The quantity demanded of the commodity will increase to 10 units (A)- with the price drop, demand increases.

4. The price elasticity of demand will be above 1 (D) - The increase in demand suggests elastic demand where the percentage change in quantity demanded is greater than the percentage change in price.

eD = percentage change in demand for the good/ percentage change in the price of the good

% Change in demand for the good = [(New quantity demanded−Initial quantity demanded) /​Initial quantity demanded]×100

$=\; [(10-2)/2]\; *100$

$=\; 400\; \%$

Percentage change in price=[(New price−Initial price)/Initial price ]​×100

$=\; [(10-20)/10]*100$

$=\; -50\%$

|eD| = 400 % /50% = 8