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Thread: Help Finding elasticity of demand!!

  1. #1
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    Help Finding elasticity of demand!!

    Find the elasticity of demand for each of the following demand functions. Ineach case determine how elasticity varies as price varies.

    a) q = 30 - 2p , 0 < p < 15
    b) q = p^-a , a > 0
    c) q = 100 - 2p^2 , 0 < p < sqrt(20)
    d) q = 1/ln(3p) , p>1/3

    so (a) is pretty simple as it is linear, its -2, but i'm not sure how to calculate the other ones.
    For example, (c) is a parabola, so how would i calculate overall elasticity of demand?

    Help with b, c , or d is much appreciated.
    thanks in advance
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  2. #2
    MHF Contributor
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    Be careful, the elasticity of demand is not the slope of the curve. it is:

    e = \frac{% \Delta Q}{% \Delta P}

    If you have a differentiable demand function Q(p) then the instantaneous Price elasticity of demand normally defined as
    e = \frac{P}{Q(P)} * \frac{dQ}{dP}


    So for part a:
     \frac{dQ}{dP} = -2
     e = \frac{P}{Q(P)} *-2
     e = \frac{-2P}{30-2P}
    Last edited by SpringFan25; Jun 21st 2010 at 01:51 PM.
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