Question #71990
for the inverse demand function curve P=60-0.5Q. find the elasticity at p=10
Expert's answer
P = 60 - 0.5Q, Q = 120 - 2P, P = 10, Q = 120 - 2*10 = 100.
Ed = a*P/Q,
Ed = -2*10/100 = -0.2, so demand is inelastic.
Ed = a*P/Q,
Ed = -2*10/100 = -0.2, so demand is inelastic.
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Comments
Dear Safia, yes, it is a derivative dQ/dP
Where did you get ”a” from? Is it a derivative?