Question

Scenario​ 2: Suppose that the demand for artichokes ​(Qa​) is given​ as: Qa​ = 200 minus 4P Use the information in Scenario 2. What is the price elasticity of demand if the price of artichokes is​ $10?

A. 0
B. minus4
C. minus0.25 Your answer is correct.
D. minus1
E. Negative infinity

Answer 1

C. minus0.25 Your answer is correct.

Step-by-step explanation:

Q = 200 - 4P

dQ/dP = - 4

price elasticity of demand = dQ/dP*P/Q

= -4 *10/(200 - 4*10)

= -0.25

Therefore. The price elasticity of demand if the price of artichokes is​ $10 IS -0.25