If demand function for a product is Qd = 30 - 4P, and the price and quantity of products is 4 and 14 respectively. What is the price elasticity of demand fo...

Assessment: JAMB UTME - Economics - 2023 Subject: Economics

Question 1 Report

If demand function for a product is Qd = 30 - 4P, and the price and quantity of products is 4 and 14 respectively. What is the price elasticity of demand for the product?
Answer Details

Q = 14, P = 4

Qd = 30 - 4p

∆q/∆p = - 4
 

Ed = ΔqΔp×pq


= - 4 x 4/14

= Ed = -1.14
since price elasticity is positive, then Ed = 1.14

Read lesson note on The Theory Of Demand (JAMB)
Read lesson note on Demand (WAEC)
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