Question

Consider the demand curve AC of a
good in figure 1. Gine distance AB and
Bc as x and
y respectively
What will be the frice elasticity of demand
for the good out point B? What will be
the price elasticity of
demand for the
good
at point A and
at
Point C?​

Answer 1

Answer:

Finding the Price Elasticity of Demand

Calculate the price elasticity of demand using the data in Figure 1 for an increase in price . Has the elasticity increased or decreased?

Step 1. We know that:

Price Elasticity of Demand = % change in quantity / % change in price

Step 2. From the Midpoint Formula we know that:

% change in quantity =Q2--Q1 / (Q2+Q)/2 ×100

% change in price = P2 - P1  /  (P2+P1)/2 × 100

Step 3. Then, those values can be used to determine the price elasticity of demand:

Price Elasticity of demand = % change in quantity / % change in price

The magnitude of the elasticity has increased (in absolute value) as we moved up along the demand curve from points A to B. Recall that the elasticity between these two points .

I will not able to put the values because you have not mention the figure.But it will help you to calculate the price elasticity of demand

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