ELASTICITY OF DEMAND Suppose that the demand equation for a certain commodity is q = 60 - 0.1p (for 0 ? p ? 600). a. Express the elasticity of demand as a function of p. b. Calculate the elasticity of demand when the price is p = 200. Interpret your answer. c. At what price is the elasticity of demand equal to 1?
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1p Elasticity of demand (E) = -0.1 * p / (60 - 0.1 * p) Show more…
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