If a good's demand function is Q = 30 - 3P, then calculate the price elasticity of demand when

a. good price is $3 using the point elasticity formula
b. good price is $4 using the point elasticity formula
c. good price decreases from $4 to $3, using the arc elasticity formula
d. good price is $5, using the point elasticity formula
e. good price increases from $4 to $5, using the arc elasticity formula


(a) -0.429; (b) -0.667; (c) -0.538; (d) -1.000; (e) -0.818

Economics

You might also like to view...

Human capital includes investments in education and skills

Indicate whether the statement is true or false

Economics

In the short run, the profit-maximizing firm will ______

A. break even if marginal revenue equals marginal cost B. make an economic profit if marginal cost is less than average total cost C. incur an economic loss if average fixed cost exceeds marginal revenue D. incur an economic loss if average total cost exceeds marginal revenue

Economics

In economics, resources are also known as

A) minerals. B) factories. C) factors of production. D) human capital.

Economics

The term tax incidence refers to

A. widespread view that taxes (and death) are the only certainties in life. B. whether the demand curve or the supply curve shifts when the tax is imposed. C. the distribution of the tax burden between buyers and sellers. D.whether buyers or sellers of a good are required to send tax payments to the government.

Economics