The elasticity of demand at a price is given as (Delta Q/Delta P)*(P/Q).
In your equation Qd=100-10P, (Delta Q/Delta P) = 10.
To find elasticity of demand at a particular price P = 2, determine the Q for the respective price P=2, using the demand equation. This results in Qd=100-(10*2) = 80.
Therefore, elasticity of demand at P=2 is 10*(2/80) = 0,25.
Please note that no matter what is the price increase, for basic elasticity calculation at a particular price.
If the elasticity calculation is needed for Arc Elasticity on average price and average quantity, the the average of prices and average of quantities for the respective prices should be considered in determining the elasticity.
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Verified answer
p=2, q=100-20=80
Elasticity= -10 x 2/80=-0.25
The elasticity of demand at a price is given as (Delta Q/Delta P)*(P/Q).
In your equation Qd=100-10P, (Delta Q/Delta P) = 10.
To find elasticity of demand at a particular price P = 2, determine the Q for the respective price P=2, using the demand equation. This results in Qd=100-(10*2) = 80.
Therefore, elasticity of demand at P=2 is 10*(2/80) = 0,25.
Please note that no matter what is the price increase, for basic elasticity calculation at a particular price.
If the elasticity calculation is needed for Arc Elasticity on average price and average quantity, the the average of prices and average of quantities for the respective prices should be considered in determining the elasticity.