1. Limited time only! Sign up for a free 30min personal tutor trial with Chegg Tutors
    Dismiss Notice
Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Price elasticity of demand

  1. Nov 18, 2013 #1
    1. The problem statement, all variables and given/known data

    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?

    2. Relevant equations

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

    3. The attempt at a solution

    1.6*200 *100 -10000

    it gives me 220000, but that can't be right
     
  2. jcsd
  3. Nov 19, 2013 #2

    Ray Vickson

    User Avatar
    Science Advisor
    Homework Helper

    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.
     
  4. Nov 20, 2013 #3
    I don't have that formula. It's not even a homework problem. I just want to know how to determine the new quantity.
     
  5. Nov 21, 2013 #4

    Ray Vickson

    User Avatar
    Science Advisor
    Homework Helper

    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.
     
Know someone interested in this topic? Share this thread via Reddit, Google+, Twitter, or Facebook

Have something to add?
Draft saved Draft deleted



Similar Discussions: Price elasticity of demand
  1. Pricing a CD (Replies: 0)

Loading...