Solved

The Demand Curve Is: QD = 500 - 1/2 P

Question 31

Essay

The demand curve is: QD = 500 - 1/2 P.
a.Calculate the (point)price elasticity of demand when price is $100.Is demand elastic or inelastic?
b.Calculate the (point)price elasticity of demand when price is $700.Is demand elastic or inelastic?
c.Find the point at which point elasticity is equal to -1.

Correct Answer:

verifed

Verified

a.Elasticity = -1/2 (100/450)= -0.11,and...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents