Final answer:
The elasticity of demand measures the responsiveness of the quantity demanded to a change in price. It is calculated by taking the percentage change in quantity demanded and dividing it by the percentage change in price.
Step-by-step explanation:
The elasticity of demand measures the responsiveness of the quantity demanded to a change in price. It is calculated by taking the percentage change in quantity demanded and dividing it by the percentage change in price.
In this case, the daily demand for sneakers is given by the equation (p) = 360 − 3p, where p is the price. To find the elasticity of demand, we need to find the percentage change in quantity demanded and the percentage change in price.
Let's assume the initial price is p1 and the final price is p2. The initial quantity demanded is (p1) = 360 − 3p1, and the final quantity demanded is (p2) = 360 − 3p2.
The percentage change in quantity demanded is ((p2) - (p1))/(p1) x 100%, and the percentage change in price is ((p2) - (p1))/(p1) x 100%. Substituting the given values into these formulas will allow us to find the elasticity of demand.