Question

Given the following demand​ equation: Q​ = 100 minus− 5p Calculate the price that corresponds with a price elasticity value of negative 1.00−1.00. p​ = nothing ​(enter your response rounded to two decimal places​).

Answer 1

Answer:

P = 10

Explanation:

Given that,

price elasticity of demand(Negative) = -1

Demand​ equation: Q​ = 100 - 5p

Differentiating Q w.r.t p,

$\frac{dQ}{dp}=-5$

Price elasticity of demand = $\frac{dQ}{dP}\times \frac{P}{Q}$

-1 = (-5) × [P ÷ (100 - 5p)]

-1(100 - 5P) = -5P

-100 + 5P = -5P

10P = 100

P = 10

Therefore, the price of $10 that corresponds with a price elasticity value of negative 1.00.