Q23 of 26 Page 34

Consider the demand curve D (p) = 10 – 3p. What is the elasticity at price 5/3?

D(p) = 10 – 3p


This implies Δq/Δp = -3


At p = 5/3


q will be = 10 – (3x5/3) = 5


Ed = Δq/Δp X p/q



= -1


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