Suppose Brittany has the following demand curve for oranges: Q = 90 − 3P If oranges...

Question

Question

Suppose Brittany has the following demand curve for oranges:

Q = 90 − 3P

business economics

Answer 1

Answer #1

Q= 90-3P

(Change in Q/ Change in P)= -3

P= $2

Q= 90-3(2)= 90-6 = 84 units

Own -price elasticity of demand for oranges =(Change in Q/ Change in P) (P/Q)

= (-3)(2/84) = -0.07

Answer 2

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