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Qd = 5-0.

5P

When P is 0, Qd = 5-0.5(0), Qd = 5-0, Qd =5

When P is 1, Qd = 5-0.5(1), Qd = 5-0.5, Qd = 4.5

When P is 2, Qd = 5-0.5(2), Qd = 5-1, Qd=4

When P is 3, Qd = 5-0.5(3), Qd= 5-1.5, Qd = 3.5

When P is 10, Qd = 5-0.5(10), Qd = 5-5, Qd=0

Qd P
5 0
4.5 1
4 2
3.5 3
0 10
Demand Curve
12

10
P
R 8
I
6
C
E 4

0
0 1 2 3 4 5 6
QUANTITY DEMANDED

B. Unitary Elastic

Answer should resulted to

e
Q,P = -1

𝑄𝑃 𝑃
e
Q,P = = -b
𝑃𝑄 𝑄
𝑃
e
Q,P = -0.5
5−0.5(𝑃)
𝑃
(-1/0.5)-1 = -0.5 (- 1/0.5)
5−0.5(𝑃)
𝑃
(5-0.5P) 2 = (5-0.5P)
5−0.5(𝑃)
10-P = P
10 = 2P
5 =P
𝑄𝑃 𝑃
e
Q,P = = -b
𝑃𝑄 𝑄
𝑃
e
Q,P = -0.5
5−0.5(𝑃)
5
e
Q,P = -0.5
5−0.5(5)

5
e
Q,P = -0.5
2.5
e
Q,P = -0.5(2)
e
Q,P = -1

At a price of 5, the demand will be unitary elastic, meaning


percentage increase in quantity demanded is equal to
percentage decrease in price

2.
Given = 300-100P
a.
P 0.1 0.45 0.5 0.55 2.5
Qd 290 255 250 245 50
eQ,P -0.034482758 -0.176470588 -0.2 -0.224489795 -5
When P=0.1, Qd = 300-100P, Qd = 300-100(0.1), Qd=300-10, Qd = 290
𝑄𝑃 𝑃
e
Q,P = = -b
𝑃𝑄 𝑄
0.1
e
Q,P = -100
290
e
Q,P = -0.034482758

When P=0.45, Qd = 300-100P, Qd = 300-100(0.45), Qd=300-45, Qd = 255


𝑄𝑃 𝑃
e
Q,P = = -b
𝑃𝑄 𝑄
0.45
e
Q,P = -100
255
e
Q,P = -0.176470588
When P=0.50, Qd = 300-100P, Qd = 300-100(0.50), Qd=300-50, Qd = 250
𝑄𝑃 𝑃
e
Q,P = = -b
𝑃𝑄 𝑄
0.50
e
Q,P = -100
250
e
Q,P = -0.2
When P=0.55, Qd = 300-100P, Qd = 300-100(0.55), Qd=300-55, Qd = 245
𝑄𝑃 𝑃
e
Q,P = = -b
𝑃𝑄 𝑄
0.55
e
Q,P = -100
245
e
Q,P = -0.224489795
When P=2.5, Qd = 300-100P, Qd = 300-100(2.5), Qd=300-250, Qd = 50
𝑄𝑃 𝑃
e
Q,P = = -b
𝑃𝑄 𝑄
2.5
e
Q,P = -100
50
e
Q,P = -5
b.
Qd P
290 0.1
255 0.45
250 0.50
245 0.55
50 2.50
0 3
300 0
150 1.5

When P=3, Qd = 300-100P, Qd = 300-100(3), Qd=300-300, Qd = 0


𝑄𝑃 𝑃
e
Q,P = = -b
𝑃𝑄 𝑄
3
e
Q,P = -100
0
e
Q,P = -negative infinity na sign daii
When P=0, Qd = 300-100P, Qd = 300-100(0), Qd=300-0, Qd = 300

𝑄𝑃 𝑃
e
Q,P = = -b
𝑃𝑄 𝑄
0
e
Q,P = -100
300
e
Q,P = 0
When P=1.5, Qd = 300-100P, Qd = 300-100(1.5), Qd=300-150, Qd = 150

𝑄𝑃 𝑃
e
Q,P = = -b
𝑃𝑄 𝑄
1.5
e
Q,P = -100
150
e
Q,P = -1

Milk Tea : Demand Curve


3.5

2.5

2
Price

1.5

0.5

0
0 50 100 150 200 250 300 350
Quantity Demanded
AWATA NI NA FORMAT DAII PARA CHOURR CHOURR,
Except aning mga a/2b, a/b. a/2, a

c. Answer should result into eQ,P = -1


𝑄𝑃 𝑃
e
Q,P = = -b
𝑃𝑄 𝑄
𝑃
-1 = -100
𝑄
𝑃
-1 = -100
300−100(𝑃)
𝑃
-1 (300-100(P)) = -100 (300-100(P))
300−100(𝑃)
-300+100P = -100P
200 P = 300
P = 1.5
𝑄𝑃 𝑃
e
Q,P = = -b
𝑃𝑄 𝑄
1.5
e
Q,P = -100
150
e
Q,P = -1

At a price of 1.5, the demand will be unitary elastic, meaning


percentage increase in quantity demanded is equal to
percentage decrease in price

D.
Basing on the graph, At a price greater than 0 but
less than 1.5, Resulted to eQ,P whose value is between 0
and -1, the demand will be inelastic, meaning
quantity demanded is relatively insensitive to the
price

E
Basing on the graph, At a price greater than 1.5 but
less than 3 , Resulted to eQ,P whose value is between -1 and
negative infinity, the demand will be elastic, meaning
quantity demanded is relatively sensitive to the price

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