Question

Qx=200-px+2py+.03y where px=10 py=15 y=1000.

Find the PED.

Answer 1

$PED=\delta Q/\delta P*P/Q$

$PED=-1*P/Q$

$Q=200-10+2(15)+0.03(1000)$

$Q=200-10+30+30$

$Q=250$

$PED=-1*10/250$

$PED=-0.04$