Question
Assume the demand function of gasoline is Q D = 500 - 50 P , in which Q D is at a unit of thousand
Assume the demand function of gasoline isQD= 500 - 50P, in whichQDis at a unit of thousand gallons andPdenotes the price per gallon. What is the (point) price elasticity of demandEDwhen the price is $3/gal? Please show your work and define the demand is either elastic or inelastic at the price. Graph is unnecessary.
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Puzzle Of Latin American Economic Development
Authors: Patrice Franko
2nd Edition
0742524663, 9780742524668
