If demand function for a product is Qd = 30..

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?

1.14

7.1

14.1

1.7

Answer Details

Q = 14, P = 4

Qd = 30 - 4p

∆q/∆p = - 4

Ed = $\frac{∆ q}{∆ p} \times \frac{p}{q}$

= - 4 x 4/14

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

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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...