a. If price decreases from p1 = 12 to p2 = 10, then Q1 = 5,000 - 100×12 = 3,800 units, Q2 = 5,000 - 100×10 = 4,000 units.
"Ed = \\frac {4,000 - 3,800}{10 - 12}\u00d7\\frac{12+10}{3,800 + 4,000} = -0.28."
So, the demand is inelastic.
B. If price increases from p1 = 10 to p2 = 12, then Q1 = 5,000 - 100×10 = 4,000 units, Q2 = 5,000 - 100×12 = 3,800 units.
"Ed = \\frac {3,800 - 4,000}{12 - 10}\u00d7\\frac{12+10}{3,800 + 4,000} = -0.28."
So, the demand is inelastic.
Comments
Leave a comment