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