Answer to Question #178013 in Microeconomics for Ratna

Question #178013

If the demand function for a good is Q=140 – 5P, what is the price elasticity of demand at P =

15 rupees?

Expert's answer

"Q=140-5P, \\space P=15 rupees"

"Q=140-5\\times15=65\\space rupees"

"E_d=\\frac{dQ}{dP}\\times \\frac{P}{Q}=-5\\times\\frac{15}{65}=-1.15"

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