Answer to Question #170643 in Microeconomics for Rahina

Question

Find the price elasticity of demand at the point where quantity demanded is equal to quantity supplied

Answer 1

The price elasticity of demand at the equilibrium can be found as follows:

$$E_d=(-\dfrac{1}{slope})\cdot\dfrac{P}{Q_d},$$

here, $P$ is the equilibrium price and $Q_d$ is the equilibrium quantity.