Economics20785 marksNumerical: price elasticity of demandPrice elasticity measurement by percentage method
Price Elasticity of Demand Given the Price demand schedule below. Find the price elasticity of demand when price changes from 40 to 20 and 20 to 40 by percentage method and also compare the results between them. | Price | 50 | 40 | 30 | 20 | 10 | 0 | |-------|----|----|----|----|-------|---| | Quant
Price Elasticity of Demand
Given the Price demand schedule below. Find the price elasticity of demand when price changes from 40 to 20 and 20 to 40 by percentage method and also compare the results between them.
| Price | 50 | 40 | 30 | 20 | 10 | 0 |
|---|---|---|---|---|---|---|
| Quantity Demand | 5 | 10 | 15 | 20 | 25 | 30 |
[5]
Price 50 40 30 20 10 0 ------------------------------- Quantity Demanded 5 10 15 20 25 30 Points of interest: - At $P = 40$, $Q = 10$ - At $P = 20$, $Q = 20$ $$Ed = \frac{% \text{ change in Quantity Demanded}}{% \text{ change in Price}} = \frac{\Delta Q / Q1}{\Delta P / P1}$$ --- Initial: