Question

Given Linear Demand curve: P = a - bX You may find the point own price...

Given Linear Demand curve: P = a - bX

You may find the point own price elasticity of demand.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Given, linear demand curve, P = a - bX............(1)

Own price elasticity of demand is given by  .

Now, .......from (1)

Thus,

To obtain the point elasticity, the value of X needs to be substituted with the value at which the elasticity is to be measured.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
For the demand curve Q=50−P, what is the own-price elasticity of demand when P=16 2/3 (that...
For the demand curve Q=50−P, what is the own-price elasticity of demand when P=16 2/3 (that is, 50/3)? Is demand elastic, inelastic, or unit elastic at that point? a) -0.5, inelastic b) -1, unit elastic c) -0.5, elastic d) 33.3, inelastic e) 33.3, elastic
When the magnitude of the price elasticity of demand at a point along the linear demand...
When the magnitude of the price elasticity of demand at a point along the linear demand curve for a product is equal to the unit, then this magnitude is higher at any higher price and lower at any lower price. true or false
The supply curve for pianos is given by the following: Qs = p-6000. Further, the demand...
The supply curve for pianos is given by the following: Qs = p-6000. Further, the demand curve for pianos is given by Qd = 18000 – 2p. Let ed be the own price elasticity of demand and es the own price elasticity of supply. In the market equilibrium for pianos: Group of answer choices ed is elastic and es is inelastic ed is inelastic and es is elastic ed is elastic and es is elastic ed is inelastic and es...
Suppose the demand curve for a product is given by the equation Qd = 30/P. Compute...
Suppose the demand curve for a product is given by the equation Qd = 30/P. Compute the quantities demanded at prices of $1, 2, 3, 4, 5, and 6. Graph the demand curve. Use the arc method to calculate the price elasticity of demand between $1 and $2, and between $5 and $6. How does this demand curve compare to the linear demand curve?
the demand for skateboard rides is given: Qd = 3Pd^-.5 find the own-price elasticity of demand...
the demand for skateboard rides is given: Qd = 3Pd^-.5 find the own-price elasticity of demand for skateboard ride is price is $37
the own price elasticity of demand shows a movement along the demand curve True or Flase
the own price elasticity of demand shows a movement along the demand curve True or Flase
The demand curve for petroleum product is downward sloping and linear in the form of P=a+bQ....
The demand curve for petroleum product is downward sloping and linear in the form of P=a+bQ. In your opinion is b>0 or <0?. What in your opinion is the relationship between MR and Q? Can you show mathematically, the relationship between P,MC and Elasticity of Demand?
1.A demand function given by: Q = 240 ‒ 3P. What is the price elasticity of...
1.A demand function given by: Q = 240 ‒ 3P. What is the price elasticity of demand when the price is P = $10? You will have to use the point elasticity formula. The price elasticity of demand at this price is ___________ 2.Consider the same demand equation, Q = 240 ‒ 3P. If a firm sells at the unit elastic price on this demand curve, what is the total revenue it will receive? The total revenue received at this...
Calculate the Demand Point Elasticity for the demand curve P = 20 - 2Q at P1=12...
Calculate the Demand Point Elasticity for the demand curve P = 20 - 2Q at P1=12 , P2=10 , P3= 8. Categorize each elasticity appropriately.
The equation for a demand curve is P=2/Q. What is the elasticity of demand as price...
The equation for a demand curve is P=2/Q. What is the elasticity of demand as price falls from 5 to 4? What is the elasticity of demand as the prices falls from 9 to 8? Would you expect the answers to be the same? Why/why not?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT