A decrease in price from R50 to R40 causes the quantity demanded to increase from 250p to 3000 units. Using the arc elasticity of demand, the price elasticity of demand is...

So, price elasticity (Arc) = ((Q1-Q0)/Q0)/((P1-P0)/P0).

Arc elasticity of demand is ((Q2 – Q1)/midpoint Q)/((P2 – P1)/midpoint P) Q1=-200+10P = 40, P=24 Q2=-200+10P = 50, P=25 Arc elasticity of demand = ((50-40)/45)/((25-24)/24,5)=5.44

If Qs = -200 + 10P, P1 = R40, P2 = R50, Q1 = -200 + 10*40 = 200, Q2 = -200 + 10*50 = 300, then the price elasticity...

1) PED = (% change in quantity demanded) / (% change in price) = = ((3000-2500)/2500) / ((40-50)/50) = -1

E_d^p=((Q2-Q1)/((Q2+Q1)/2))/((P2-P1)/((P2+P1)/2))=((3000-2500)/((3000+2500)/2))/((40-50)/((40+50)/2))=0.18/(-0.22)=-0.82

Price: 50, Quantity:50 = -5Q + 705Q = 70 -505Q = 20Q = 4Price: 40, Quantity:40 = -5Q + 705Q = 30Q = 6Price: 30, Quantity:30 = -5Q + 705Q...

Price Elasticity of Demand (Ed) = Percentage Change in Quantity Demanded / Percentage Change in Price(-)0.2 = -10 / Percentage Change in PricePercentage Change in Price = -10 / -0.2...

Demand is defined as an economic term that refers to a customer's ability to purchase goods and services and the ability to pay a premium for a given commodity or service....

Price elasticity of demand = % change in Quantity demanded. / % change in Price = 10%/40% price elasticity =0.25

The law of demand states - when price increases, quantity demand will decrease.When price decreases, the quantity demanded will increase.