Given the demand function Q = 20 - 5P, the elasticity of demand at P = 3 is
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1 mark, −0.33MicroeconomicsDemand theory and elasticityPrice elasticity of demandModerateabout 1 min
UoH 2012 Question 15: Demand theory and elasticity
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Given the demand function Q = 20 - 5P, the elasticity of demand at P = 3 is (A) -1 (B) 5 (C) -3 (D) 0
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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