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Consider the demand curve D = 10 – 3p. What is the elasticity of price \(\frac{5}{3}\). |
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Answer» D = 10 - 3P Since P = \(\frac{5}{3}\) , we get D = 10 - 3 x \(\frac{5}{3}\) = 10 - 5 = 5 Ed = \(\frac{ΔQ}{ΔP}\) = \(\frac{5}{5/3}\) = \(5\times\frac{3}{5}\) = \(\frac{15}{5}\) = 3 Elasticity is = 3 |
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