The demand for telephone wire can be expressed as:
Q = 6000 - 1,500P,
where Q represents units, in pounds per day, and P represents price, in dollars per pound. Determine the price elasticity of demand at per pound.

Question

The demand for telephone wire can be expressed as:
Q = 6000 - 1,500P,
where Q represents units, in pounds per day, and P represents price, in dollars per pound. Determine the price elasticity of demand at

per pound.

Brandon Sauval · Accepted Answer

Final Answer :

We use the point price elasticity concept. First, we calculate Q at

Q = 6000 - 1,500(2) = 3,000 pounds per day. We use the point price elasticity concept. First, we calculate Q at Q = 6000 - 1,500(2) = 3,000 pounds per day. = ∙ = (-1500) = -1 This indicates a unitary elasticity at this price.