the demand is given by p= 140-4Q Where P is the price and Q is the...

the demand is given by p= 140-4Q Where P is the price and Q is the quantity demanded. Find the price at which the own price elasticity is -3.
(round to 2 decimals)

Expert Solution

Demand is given by :

P = 140 - 4Q => Q = 0.25(140 - P) => dQ/dP = -0.25

Price elasticity of demand(e) = (dQ/dP)(P/Q)

We want e = -3

=> e = (dQ/dP)(P/Q) = -3

=> -0.25(P/(0.25(140 - P))) = -3

=> P = 3(140 - P)

=> 4P = 420

=> P = 105

Hence, Own price elasticity of demand is -3 when price(P) = 105

Rahul Sunny answered 2 years ago

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