Take the 2-minute tour ×
Economics Stack Exchange is a question and answer site for professional and academic economists and analysts. It's 100% free, no registration required.

The question is below:

Given a demand function QD = 17 – 6P, find the elasticity of demand at P = $2. Is the demand elastic or inelastic when P = 2?

Heres what I know: Q = 17 - 6 (2) = 5

δQ/δP = -6

But how do I find εD?

Thanks in advance.

share|improve this question
    
Please show your work on your attempt thus far otherwise this is likely to be closed as a low quality question. –  BKay Apr 12 at 20:53
    
I figured it out actually: εD = δQ/δP * P / Q = -6 * (2/5) –  JDH Apr 12 at 23:48
1  
You can enter and accept your own answer as a resource to the community. –  BKay Apr 13 at 0:03

1 Answer 1

I figured it out. In my solution: $$\epsilon_D = \partial Q / \partial P \cdot P/ Q = -6 * (2/5)$$

share|improve this answer

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.