Question

A good's demand is given by: P = 352-3Q. At P = 127, the point price elasticity is: Enter as a value (ROUND TO TWO DECIMAL PLACES).​

Answer 1

The point price elasticity of demand at P = 127 is approximately -0.62.

Step-by-step explanation:

The formula to calculate the price elasticity of demand is given by:

Price Elasticity of Demand (E) = (dQ/dP) * (P/Q)

Given the demand equation P = 352 - 3Q, we can differentiate it to find dQ/dP:

Let dQ/dP = -3

Now, substitute the given values into the formula:

E = (dQ/dP) * (P/Q) = (-3) * (127/((352-3*127))) ≈ -0.62

Therefore, the point price elasticity of demand at P = 127 is approximately -0.62.