What values should I plug in for the P, the QD, and the QS values in these equations for elasticity of demand and supply? The demand and supply equations are: QD=15-10P QS=40P-50
What values should I plug in for the P, the QD, and the QS values in these equations for elasticity of demand and supply? The demand and supply equations are: QD=15-10P QS=40P-50
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
What values should I plug in for the P, the QD, and the QS values in these equations for
QD=15-10P
QS=40P-50
![The image contains equations related to elasticity in economics. The equations are as follows:
1. **Price Elasticity of Demand (E<sup>D</sup>):**
\[
E^D = \frac{\Delta Q^D}{\Delta P} \times \frac{P}{Q^D} = \frac{1}{\text{slope}} \times \frac{P}{Q^D}
\]
- **ΔQ<sup>D</sup>/ΔP**: Change in quantity demanded over the change in price.
- **P/Q<sup>D</sup>**: Price over quantity demanded.
- **1/slope**: The reciprocal of the slope of the demand curve.
2. **Price Elasticity of Supply (E<sup>S</sup>):**
\[
E^S = \frac{\Delta Q^S}{\Delta P} \times \frac{P}{Q^S} = \frac{1}{\text{slope}} \times \frac{P}{Q^S}
\]
- **ΔQ<sup>S</sup>/ΔP**: Change in quantity supplied over the change in price.
- **P/Q<sup>S</sup>**: Price over quantity supplied.
- **1/slope**: The reciprocal of the slope of the supply curve.
These formulas are key to understanding how the quantity demanded or supplied of a good responds to changes in price. The arrows indicate that these formulas are important for further explanation in the educational content.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7be2afcb-e6c0-4aef-8b6e-0bb2976a5e20%2Ff66f0560-9f6f-47c0-8219-9a35c21ab1d8%2Feyvdfti_processed.png&w=3840&q=75)
Transcribed Image Text:The image contains equations related to elasticity in economics. The equations are as follows:
1. **Price Elasticity of Demand (E<sup>D</sup>):**
\[
E^D = \frac{\Delta Q^D}{\Delta P} \times \frac{P}{Q^D} = \frac{1}{\text{slope}} \times \frac{P}{Q^D}
\]
- **ΔQ<sup>D</sup>/ΔP**: Change in quantity demanded over the change in price.
- **P/Q<sup>D</sup>**: Price over quantity demanded.
- **1/slope**: The reciprocal of the slope of the demand curve.
2. **Price Elasticity of Supply (E<sup>S</sup>):**
\[
E^S = \frac{\Delta Q^S}{\Delta P} \times \frac{P}{Q^S} = \frac{1}{\text{slope}} \times \frac{P}{Q^S}
\]
- **ΔQ<sup>S</sup>/ΔP**: Change in quantity supplied over the change in price.
- **P/Q<sup>S</sup>**: Price over quantity supplied.
- **1/slope**: The reciprocal of the slope of the supply curve.
These formulas are key to understanding how the quantity demanded or supplied of a good responds to changes in price. The arrows indicate that these formulas are important for further explanation in the educational content.
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