Question

how do you draw the demand curve q=250-10p

calculate the price elasticity of demand at prices of $5, $10, and $15 to show how it changes as you move along this linear demand curve

Answer 1

In another condition when price rises from 10 you 15 and quantity decrease from 150 to 100.

So %∆ P = 10-15/10×100 = (-)50%

%∆Q = 150 - 100/150× 100 = 33.3%

So price elasticity of Demand = 33.3/50 = 0.66.