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A good’s demand is given by: P = 400 – 2Q. At P = 300, the...

A good’s demand is given by: P = 400 – 2Q. At P = 300, the point price elasticity is:
Enter as a value (round to two decimal places if necessary).

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Answer #1
  • Price elasticity of demand refers to the responsiveness of a goods demand with respect to the change in its price and the price elasticity of demand at a particular point is called point price elasticity of demand.
  • We are given an inverse demand function, P = 400 - 2Q and the price is given as P = 300.
  • To find the point price elasticity we must follow the following steps :

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