# Math Help - Economics help required

1. ## Economics help required

Consider two demand curves that have the same vertical intercepts (ie identical 'choke' prices). That is, their inverse demand functions can be written as p1 = a-bq1 and p2 = a - dq2. Fix an arbitrary price and compute the price elasticities at that price. Show that these price elasticities are the same.

2. Originally Posted by brumby_3
Consider two demand curves that have the same vertical intercepts (ie identical 'choke' prices). That is, their inverse demand functions can be written as p1 = a-bq1 and p2 = a - dq2. Fix an arbitrary price and compute the price elasticities at that price. Show that these price elasticities are the same.
Use this formula:
$E_d=\frac{P}{Q}*\frac{dQ}{dP}$

You will need to solve your demand equations for Q in terms of P first in order to find $\frac{dQ}{dP}$