Market demand is given as Q_D= 300- 3P.Market supply is given as Q_S= 2P + 100.If price increases from $50 to $60,what is the price elasticity of demand

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To calculate the price elasticity of demand, we need to use the formula: Elasticity = (Percentage change in quantity demanded) / (Percentage change in price) Given that the price increases from $50 to $60: Change in price = (60-50)/50 = 0.2 To calculate the change in quantity demanded, we need to use the demand function: Q_D= 300- 3P When P= $50: Q1 = 300 - 3(50) = 150 When P= $60: Q2 = 300 - 3(60) = 120 Change in quantity demanded = (Q2-Q1)/Q1 = (120-150)/150 = -0.2 Therefore, elasticity = |-0.2/0.2| = 1.2 Hence, the answer is C) 1.2.

Market Demand Is Given as QD = 300- 3P

Market Demand Is Given as Q_D= 300- 3P