Answer to Question #262198 in Microeconomics for Abdikarim

Question

The demand for tickets to an Ethiopian Camparada film is given by D(p)= 200,000-

10,000p, where p is the price of tickets.If the price of tickets is 12 birr, calculate price

elasticity of demand for tickets and draw the demand curve?

Answer 1

Elasticity of demand

$=\frac{dq}{dP}\times\frac{P}{q}$

$=\frac{d(200,000-10,000P)}{dP}\times \frac{P}{(200,000-10,000P)}$

$=\frac{-P}{20-P}$

Substituting the value of P:

$=\frac{-12}{20-12}$

$=1.5$