For each of the following equations, determine whether demand is elastic, inelastic or unitary elastic at the given price.
a) P = 50 – 0.1Q and P = Rs. 20
b) 20P =1500-Q and P=Rs.5
c) 4P =100-Q and P=Rs. 20
Point price elasticity is calculated using the formula: Ed = P/Q*Q(P)' a) P = 50 – 0.1Q, Q = 500 - 10P, P = Rs. 20, so Ed = 20/300*(-10) = -0.66, so demand is inelastic (|Ed| < 1). b) 20P =1500-Q, Q = 1500 - 20P, P=Rs.5, so Ed = 5/1400*(-20) = -0.07, so demand is very inelastic (|Ed| < 1). c) 4P =100-Q, Q = 100 - 4P, P=Rs. 20, so Ed = 20/20*(-4) = -4, so demand is elastic (|Ed| > 1).
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
APPROVED BY CLIENTS
What else can I say, I am confident enough to say thank you for the kind support, to experts your such a blessing to help others, like me, especially when we needed the most. Customer service thank you for the service too. I will keep you in my mind and recommend you to anyone. God bless !!!