Question

Eunji is selling delicious pie.

Change in pie demand for price change of pie: When the unit price of pie is changed from 4 to 5, the pie sales fluctuate from 30 to 24.

Derive the linear demand curve of the pie, and obtain the price level of the pie whose price elasticity of demand is -1.

Answer 1

Derivation of linear demand curve is as follows=

Q = a - bp

Here

Q = quantity demanded of Pie ( dependent variable)

a = autonomous demand that is the demand for pie when price = 0

b = ∆Q / ∆ P

P = price ( independent variable )

the demand curve will be as follows--when the elasticity is equal to -1 , the price level should be 4.8.

The calculation is in the picture