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Suppose That the Demand for Artichokes (Qa) Is Given As

Question 117

Essay

Suppose that the demand for artichokes (Qa) is given as:
Qa = 120 - 4P
a. What is the point price elasticity of demand if the price of artichokes is $10?
b. Suppose that the price of artichokes increases to $12. What will happen to the number of artichokes sold and the total expenditure by consumers on artichokes?
c. At what price if any is the demand for artichokes infinitely elastic?

Correct Answer:

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a.
The inverse of the slope of the deman...

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