Consider the demand curve Q = 50 - 3P,for P=10 elasticity is:

Question

Quizplus · Accepted Answer

To find the elasticity at P=10, we need to use the formula:
E = (dQ/dP) * (P/Q)
First, we need to find dQ/dP:
dQ/dP = -3
Then, we need to find Q at P=10:
Q = 50 - 3P
Q = 50 - 3(10)
Q = 20
Now we can calculate the elasticity:
E = (dQ/dP) * (P/Q)
E = (-3) * (10/20)
E = -1.5
Since elasticity is always positive, we take the absolute value:
E = 1.5
Therefore, the best choice is B) 1.5.

Consider the Demand Curve Q = 50 - 3P,for P=10