the demand curve of a product is given by p 100 5q find th

Solution

Price elasticity of demand is how much quantity demanded changes in response to a change in price. (dQ/Q)/(dp/P)= (dQ/dP)*(P/Q) dP/dQ=-5, so dQ/dP=-1/5. therefore price elasticity of demand= -P/5Q given p = 25 so q = 15 EoD = -25/5*15 = -1/3