How to use the price demand equation : x = f(p) = 60,000 - 700p to find E(p), the elasticity of demand?
1 Answer
Oct 22, 2017
See the following example :)
Explanation:
Inverse demand function:
Noted that,
Price Elasticity of Demand=
percentage change of quantity / percentage change of price
Noted that
You can try to follow the above explaination and plug in the given information of your question to find the answer. Hope this can help you. Feel free to ask me if you still don't understand :)