Qd = 60 − 4P. At what price is demand unitary elastic?

Explanation

1. 01

   eₚ = 4P ÷ (60 − 4P) = 1 when 4P = 60 − 4P, so P = ₹7.50.

2. 02

   That is the midpoint of the line, where Q = 30.