Calculating Sales Change with Price Elasticity of Demand

[EdmureTully]

Homework Statement

Given a price elasticity of 1.6 and an initial sales number of 10000 what would be the sales number if price went from 4.99 to 10.00?

Homework Equations

Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price

The Attempt at a Solution

1.6*200 *100 -10000

it gives me 220000, but that can't be right

 

[Ray Vickson]

Homework Statement

Given a price elasticity of 1.6 and an initial sales number of 10000 what would be the sales number if price went from 4.99 to 10.00?

Homework Equations

Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price

The Attempt at a Solution

1.6*200 *100 -10000

it gives me 220000, but that can't be right

What is the formula for Quantity as a function of price? It is the solution of a differential equation; first write out the equation, then solve it. Once you have done that it is a simple matter of substitution.

 

[EdmureTully]

I don't have that formula. It's not even a homework problem. I just want to know how to determine the new quantity.

 

[Ray Vickson]

I don't have that formula. It's not even a homework problem. I just want to know how to determine the new quantity.

You may not "have that formula", but I have told you what you need to do to get it. The rest is up to you.