Question 20
HardOriginal questionQd = 60 − 4P. What is the price elasticity of demand at P = ₹5?
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
At P = 5, Q = 60 − 20 = 40; the slope term ΔQ ÷ ΔP = 4.
eₚ = 4 × 5 ÷ 40 = 0.5.
- Concept
- Point elasticity from a linear function
- Typical timeTypical
- 100 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Price Elasticity of Demand, at your own pace.