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Please draw the demand and quantity graph for the question Ninth Assignment Calculate and categorize the Point elasticity for the (inverse) demand curve P =
Please draw the demand and quantity graph for the question
Ninth Assignment Calculate and categorize the Point elasticity for the (inverse) demand curve P = 18 - NIH Q at P1= 6, P 2=9, P3=12.To calculate the point elasticity of demand, we'll first find the derivative of the demand curve with respect to quantity (Q) to get the slope of the demand curve. Then we'll plug in the given quantity (Q) to find the slope at that point. Finally, we'll use the formula for point elasticity: E = Change in Quantity x Initial Quantity Change in Pricex Initial Price Given: * Demand curve: P = 18 - }Q . Initial price Pi = 6 * New prices P2 = 9 and P3 = 12 Let's begin by finding the derivative of the demand curve with respect to quantity (Q): P = 18 - Q Taking the derivative: 10 = - This represents the slope of the demand curve. Now, let's calculate the point elasticity for P2 = 9: * Initial quantity Q 1 corresponding to P1 - 6: PI = 18 - }Q1 6 =18 - Q1 $Q1 = 12 Q1 = 24 Using the formula for point elasticity: E - Change in Quantity x Initial Quantity Change in Pricex Initial Price E, - (9:-21)xQ1 TR-RIXA Substituting the given values: Ex = (91 24)x24 (9 6) x6 Since P2 = 9, let's find Q2: P2 = 18 - Q2 9 = 18 - Q2 Q2 = 9 Q2 = 18 Now substituting Q2 = 18 into the elasticity formula: E2 - (18-24) x24 (9-6) x6 E = -6x24 3x6 E, = 18 E4 = -8 Now let's categorize the elasticity: . Ez = -8 Since the elasticity is negative, the demand is elastic. This means that the percentage change In quantity demanded is greater than the percentage change In price. Now, let's calculate the point elasticity for Po = 12 using the same processStep by Step Solution
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