Mary’s demand curve for food is . Her price elasticity of demand for food at price P* equals (-2/3). How much is P*?
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JNU SIS 2019 Question 18: Demand theory and elasticity
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Mary’s demand curve for food is Q = 10 - 2P. Her price elasticity of demand for food at price P* equals (-2/3). How much is P*? (A) 2 (B) 4 (C) 1 (D) none of the above
Demand theory and elasticity has come up 161 times in 7 exams since 2004.
What this question tests
This question is on Price elasticity of demand, part of Demand theory and elasticity in Microeconomics.
How responsive quantity is to price, at a point, along a linear curve, and for constant-elasticity demand.
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