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The demand for a company’s product is given by Qd = 3,000 – 40 P.       ...

The demand for a company’s product is given by Qd = 3,000 – 40 P.

       Do we expect the own price elasticity of demand to be higher at P=$40 or at P=$60?

a) Elasticity will be higher at P = $40.

b) Elasticity will be higher at P = $60.

c) Elasticity is the same at either price.

d) We don’t have enough information to answer this question.

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Answer #1

OPTION B

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