# Thread: Elasticity of Demand

1. ## Elasticity of Demand

The demand equation for a certain product is given by p = 10e^(-0.001q)
where p is the price in dollars and q is the quantity in units.

a) Find the elasticity of demand when 200 units are produced.

b) Interpret your result form part a) by analyzing the revenue when the unit price is decreased.

2. ## Re: Elasticity of Demand

Originally Posted by hellokitty999
The demand equation for a certain product is given by p = 10e^(-0.001q)
where p is the price in dollars and q is the quantity in units.

a) Find the elasticity of demand when 200 units are produced.

b) Interpret your result form part a) by analyzing the revenue when the unit price is decreased.
Hi hellokitty999!

Elasticity of demand is $\frac{P}{Q_d} \times \frac{1}{\frac{dP}{dQ_d}}$.

Can you calculate that?

3. ## Re: Elasticity of Demand

I have no idea can you show me steps please ?!

4. ## Re: Elasticity of Demand

Originally Posted by hellokitty999
I have no idea can you show me steps please ?!
It's no fun for me to just give you a complete answer.
But if you try some steps I'll help you along.

For starters, what is the price for a demand quantity of 200 units?

5. ## Re: Elasticity of Demand

Do I just put 200 in place of q

Yep!

7. ## Re: Elasticity of Demand

Ok and from there

8. ## Re: Elasticity of Demand

Well... what it the price for a demand of 200?

9. ## Re: Elasticity of Demand

Ah well.
If you don't want to learn and don't want to try, that's up to you.
Perhaps someone else will pick up this thread and give a complete solution.