Question

Demand schedule P=610-3Q
Supply schedule P= 20+2Q
Calculate price elasticity

Answer 1

$$Q_D=\frac{610}{3}-\frac{1}{3}p$$

$$610-3Q=20+2Q$$

$$5Q=590$$

$$Q=118$$

$$p=256$$

$$E=-\frac{1}{3}\times\frac{256}{118}=-0.72$$