Question

The demand for tickets to an ethioian camparada film is given by D(p)=200,000-10,000p,where p is price of tickets. If the price of tickets is 12,calculate price elasticity of demand for tickets and draw demand curve

Answer 1

Given :

D(p)=200,000-10,000 p

At price 12 Birr change demand units will be;

$\frac{Change in demand}{ Change in price }=-10,000$

$D(p)= 200,000 - 10,000\times12$

= 80,000 units

Elasticity in demand= $\frac{Change in demand}{ Change in price unit}$

= $-10,000\times\frac{12}{80,000}$

=-1.5

Demand curve;