If P=100 - 2Q, and P=80, what is the point elasticity?
Point elasticity refers to a price elasticity of demand at a particular point on the demand curve. Point elasticity of demand = (change in Quantity /change in Price) * (Price / Quantity).
Answer and Explanation: 1
Step 1: Rewrite the demand equation to make Q the subject
P=100 - 2Q
- 2Q = P ? 100
Q = -0.5P + 50
Step 2: Calculate the value of Q
Q = -0.5P +...
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fromChapter 3 / Lesson 64
In economics, point elasticity is the property where a change in the price of a good or service will impact the product's demand. Learn about point elasticity by exploring its method, formula, and calculation results. Review the law of demand, the demand curve, and elasticity to understand the point elasticity of demand.