Answer to Question #70348 in Microeconomics for Ryan Rossman

Question #70348

If P = 200 - 4Q, then the price elasticity of demand at P=80 is?

Expert's answer

If P = 200 - 4Q, P=80, then the price elasticity of demand is E=-b*(P/Q). Q = (80-200)/-4=30.
E= 4*(80/30)=10.67.

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