Answer to Question #89670 in Microeconomics for prathu

Question

Consider the following equations: Qd = 31 - 3P and Qs = 6 + 2P, where Qd = quantity demanded and Qs = quantity supplied, P = price
Demand Schedule
Price Quantity demanded
$250 1500
$200 2100
$150 2700

If the own-price elasticity of demand for a good is -0.6 and quantity demanded decreases by 30%, price must have"?

Answer 1

The quantity must have increased by -30/-0.6=50%.