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given the demand equation p=550/(q+30) find the point elasticity at q=400

given the demand equation p=550/(q+30)
find the point elasticity at q=400
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demand equation p=550/(q+30)

q=400

when q = 400, p = 550/(400+30) = 550/430 = 1.279

finding elasticity at P = 1.279 and q = 400

Price elasticity = (dQ/dP) * (p/q)

we can find (dQ/dP) by differntiating the demand curve

q = 550/p - 30 (rearranging the demand equation)

dq/dp = -550/p2 = -550/1.2792 = -336.22 (we have just differntiated)

(p/q) = (1.279/400) = 0.0031975

therefore price elasticity = (dQ/dP) * (p/q) = -336.22 * 0.0031975 = -1.075

Price elasticity = -1.075

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