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The demand function for a good is Q = 100 − 2p. What is the elasticity at the point p = 10 and Q = 80. (Use the definition = dQ/dp · p/q, where dQ/dp=-2).

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section: Chapter Questions

Problem 14AA

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Question

The demand function for a good is Q = 100 − 2p.

What is the elasticity at the point p = 10 and Q = 80.

(Use the definition = dQ/dp · p/q, where dQ/dp=-2).

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What would the elasticity be if the demand function were Q = 150 -2P (USE P = 100)?

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