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(4 points) Mary's demand curve for food is Q = 10 2P. Her price elasticity of demand for food at price P*equals 2/3 . How
(4 points) Mary's demand curve for food is Q = 10 2P. Her price elasticity of demand for food at price P*equals 2/3 . How much is P*?
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Mary's demand function is QB = 10 2P. His price elasticity of demand at P* is
=( dQB/dP)(P * QB*)=2 (P *)(10 2P * )
=(-2/3)
3P* = 10 2P *
P* = 2
But how ( dQB/dP)(P * QB*) became equal to 2 (P *)(10 2P * ) ???
Can you explain step by step ??
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