Calculate the elasticity when P=10, Qd=200-10P: options: -1 1 3 -3 Suppose demand is linear: Qd=a-bP We know that the price elasticity of demand is -0.5, quantity of demand Qd=100, price P=10, then: a=200,b=10 a=200, b=-10 a=150, b=5 a=50, b=-5
Calculate the elasticity when P=10, Qd=200-10P: options: -1 1 3 -3 Suppose demand is linear: Qd=a-bP We know that the price elasticity of demand is -0.5, quantity of demand Qd=100, price P=10, then: a=200,b=10 a=200, b=-10 a=150, b=5 a=50, b=-5
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 16SQ
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Transcribed Image Text:Calculate the elasticity when P=10, Qd=200-10P:
options:
-1
1
3
-3
Transcribed Image Text:Suppose demand is linear:
Qd=a-bP
We know that the price elasticity of demand is -0.5, quantity of demand Qd=100,
price P=10, then:
a=200,b=10
a=200, b=-10
a=150, b=5
a=50, b=-5
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