Given the demand function P = 20 – 5Q, find the price elasticity of demand when price of the commodity is 5 Birr per unit. Mention if the demand is price elastic or inelastic at this point
P=20 - 5Q
5 = 20 - 5Q
5 - 20 = 5Q
-15 = 5Q
Q = 3
"E_d =\\frac{dQ}{dP}.\\frac{P}{Q}=-\\frac{1}{5}\u00d7\\frac{5}{3}=-0.333"
The demand price is inelastic
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