Given the following demand curve,P = 62.5 - 0.167Q,when P = $38,demand is classified as being

Name: Given the following demand curve,P = 62.5 - 0.167Q,when P = $38,demand is classified as being
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Question

Quizplus · Accepted Answer

The elasticity of demand can be calculated using the formula: E = (dQ/dP) * (P/Q). First, solve for Q when P = $38: 38 = 62.5 - 0.167Q, which gives Q = 146.11. The derivative dQ/dP is -1/0.167. Plug these values into the elasticity formula to find E. If E > 1, demand is elastic.

Given the Following Demand Curve,P = 62