Question

the equation for a demand curve is P=48-3Q. what is the elasticity in moving from a quantity of 5 to a quantity of 6?​

Answer 1

Answer:

Equation of Demand Curve is P= 48–3Q

When Quantity is 5,

P = 48–3×5

P = 48–15

P= ₹33

Price is ₹33 at quantity of 5

When Quantity is 6,

P = 48–3×6

P=48–18

P= ₹30

Price is ₹30 at quantity of 6

P = ₹33 & Q = 5

P1 = ₹30 & Q1 = 6

∆P(P1-P) = -3 & ∆Q(Q1-Q) = 1

Formula of elasticity is

Ed = ∆Q/∆P × P/Q

Ed = 1/(-3) × 33/5

Ed = 33/(-15)

Ed = -2.2

Elasticity of a commodity is -2.2

Hope This helps you mate☺️

#Siddharth Here!