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The demand for orange at price $10 is 100 and at price the $8 the demand is 150. Find the elasticity of demand.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Elasticity

Section: Chapter Questions

Problem 3WNG: The quantity demanded of good X rises from 130 to 145units as income rises from 2,000 to 2,500 a...

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The demand for orange at price $10 is 100 and at price the $8 the demand is 150. Find the elasticity of demand.

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Expert Solution

Step 1

Initial price(P) = $10

Final price(P1) = $8

Initial quantity(Q) = 100 units

Final quantity(Q1) = 150 units

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