For each of the following equations, Determine whether demand is elastic, inelastic or unitary elastic at the given price: (i) Q= 50 – 2P at P= 20 (ii) Q= 30 – 5P at P= 2
For each of the following equations, Determine whether demand is elastic, inelastic or unitary elastic at the given price: (i) Q= 50 – 2P at P= 20 (ii) Q= 30 – 5P at P= 2
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:13.
For each of the following equations, Determine whether demand is elastic, inelastic or unitary
elastic at the given price:
(i) Q= 50 – 2P at P =20
(ii) Q= 30 – 5P at P = 2
14.
The management of a manufacturing firm believes that the price elasticity of demand of its
product is -2.0. Currently, the product is priced at 7400 and the quantity demanded is 8000
per month. If the price is increased to ?500, how many units will the firm be able to sell each
month?
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