i Attempt1 Save uestion 13 1 point If the demand for orange

i: Attempt1 Save uestion 13 (1 point) If the demand for orange juice is expressed as Q = 2, 100-450p, where Q is measured in gallons and p is measured in dollars, then at the price of $5, the price elasticity of demand is Your Answer Answer Save uestion 14(1 point)

Solution

P

Q

% change in Q

% change in P

Ed

0

2100

1

1650

-0.21

2

1200

1.00

-0.27

-3.7

3

750

0.50

-0.38

-1.3

4

300

0.33

-0.60

-0.6

5

-150

0.25

-1.50

-0.2

6

-600

0.20

3.00

0.1

As per the above table the price elasticity of demand at price 5 is -0.2 which means the elasticity is inelastic as it is less than 1. The formula used is % change in Q to % change in price.

P	Q	% change in Q	% change in P	Ed
0	2100
1	1650		-0.21
2	1200	1.00	-0.27	-3.7
3	750	0.50	-0.38	-1.3
4	300	0.33	-0.60	-0.6
5	-150	0.25	-1.50	-0.2
6	-600	0.20	3.00	0.1