Question

From the following demand curve determine the elasticity at the given price
Q = 1200 - 10P
When P = 5, dQ/dP = 10​

Answer 1

Answer:

Dont worry genius is here

Explanation: elasticity is less than 1 (0.04) so its inelastic

Answer 2

Concept: Price elasticity of demand is the ratio of percentage change in the quantity of the product to the percentage change in the price of the product.

Given: Q = 1200 - 10P

dQ/dP = 10​  P=5

Find: Calculate price elasticity of demand.

Solution: Calculation of elasticity of demand.

Price elasticity=$\frac{dQ}{dP} X\frac{P}{Q}$

                       =$\frac{10XP}{1200-10P}$

Price elasticity (when P=5)=$\frac{10X5}{1200-10X5}$

                                           = $\frac{50}{1200-50}$

                                           =$\frac{50}{1150}$

                                            =$\frac{1}{23}$

                                            =0.04

Final answer: Price elasticity of demand is 0.04.

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