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Math Help - Price Elasticity of Demand

  1. #1
    Newbie Auger's Avatar
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    Sep 2009
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    Price Elasticity of Demand

    I know this is an economics subject, however I have learned it this term in University Intro Calculus. I have continually had trouble with it and have never gotten anything right. Here are two questions:

    1. Demand: p=600-5x at x=30
    2. Demand: p=5-0.03x at x=100

    I need to find the price elasticity of each and determine whether or not it is elastic or inelastic.

    Thanks for your help,

    Auger
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  2. #2
    Junior Member
    Joined
    Jul 2009
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    Quote Originally Posted by Auger View Post
    I know this is an economics subject, however I have learned it this term in University Intro Calculus. I have continually had trouble with it and have never gotten anything right. Here are two questions:

    1. Demand: p=600-5x at x=30
    2. Demand: p=5-0.03x at x=100

    I need to find the price elasticity of each and determine whether or not it is elastic or inelastic.

    Thanks for your help,

    Auger
    Recall Price elasticity demand = % change in quantity demanded/ % change in price

    in calculus it is = p/q* (change in Q/change in p)
    Change in Q/change in p is the slope of demand curve

    Given a linear Demand q= a-bp
    Elasticity = -bp/q = -bp/(a-bp)
    q= quantity demand, p=price

    hope this helps
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