Question #71990

for the inverse demand function curve P=60-0.5Q. find the elasticity at p=10

Expert's answer

P = 60 - 0.5Q, Q = 120 - 2P, P = 10, Q = 120 - 2*10 = 100.

Ed = a*P/Q,

Ed = -2*10/100 = -0.2, so demand is inelastic.

Ed = a*P/Q,

Ed = -2*10/100 = -0.2, so demand is inelastic.

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