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# Answer to Question #40515 in Microeconomics for ashwini

Question #40515
Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2
1
2014-03-26T11:22:03-0400
Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2
Solution
P1=3; Q1=10-2*P1=10-2*3=10-6=4
P2=2; Q2=10-2*P2=10-2*2=10-4=6; decrease in price &Delta;P=P2-P1=2-3=-1; decrease in demand &Delta;Q=Q2-Q1=6-4=2
Elasticity of demand is calculated by E=(P1+P2)*&Delta;Q/((Q1+Q2)*&Delta;P)=(3+2)*2/((4+6)*(-1))=-1

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Assignment Expert
31.03.14, 18:23

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ashwini
26.03.14, 12:02

thanks a lot for the answer