Consider the demand curve D(p) )10-3p. What is the elasticity at … - Vidyadip

Question

Consider the demand curve D(p) )10-3p. What is the elasticity at price $\frac{5}{3} ?$

✓

Answer

Given, demand curve $D (p)=10-3 p$
$\quad$$\quad$Price $=\frac{5}{3}$
$D=10-3 \times \frac{5}{3}=10-5=5$
D=5 units
D(p)=10-3p
$\frac{\Delta D }{\Delta p}=-3 \quad$ or $\quad \frac{\Delta q}{\Delta p}=-3$
Elasticity of demand $\left( E _{ d }\right)=(-) \frac{p}{q} \times \frac{\Delta q}{\Delta p}$
$E_d=(-) \frac{\frac{5}{3}}{5} \times-3$
$E_d=(-) \frac{5}{3} \times \frac{1}{5} \times-3$
$E_d=1$
$\Rightarrow$
$\therefore$ Elasticity of demand $=1$.]

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from MICROECONOMICS CH : 6 PRICE ELASTICITY OF DEMAND→MICROECONOMICS CH : 6 PRICE ELASTICITY OF DEMAND — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

A consumer buys 27 units of a good at a price of ₹10 per unit. When the price falls to ₹9 per unit, the demand rises to 30 units. What can you say about price elasticity of demand of the good through the 'total expenditure method?

Explain ‘large number of buyers and sellers’ feature of perfectly competitive market.

When price of a commodity falls from $₹ 12$ per unit to $₹ 9$ per unit, the producer supplies $75$ per cent less output. Calculate price elasticity of supply.

What is meant by Consumer Price Index? Explain any two uses of Consumer Price Index (CPI).

Total revenue of a firm rises from $₹ 50$ to $₹ 100$ when the price of its product rises from $₹ 5$ per unit to $₹ 10$ per unit. Calculate the price elasticity of supply.

What do you mean by deciles?

Equilibrium price never changes in a situation of perfectly elastic supply, no matter what the demand is. Is it true? Explain diagrammatically.

If in the previous question, each worker is given a hike of 10% in wages, how are the mean and standard deviation values affected?

“There are three lies-lie, damn lie and statistics”. Explain.

Following is known about a firm:

Units of Labour (Input)	1	2	3	4	5	6
Total Output	50	110	150	180	180	150

State and explain the law underlying the change in output as input is changed. Also identify the various stages (or phases) in total product.