P=285-2Q
a) What is P if Q = 5, answer is $275
b) What is Q if P = $200, answer is 42.5
c) This one is confusing me, it asks what is price elasticity of demand if price equals $200, I know PEoD = change in Q / change in P but the question doesn't say anything about question a so I'm assuming part a relates to part c? My answer for this is -27.5.
d) What is the price if PEoD= -1 (or unitary elasticity). This is the main one I'm stuck on. I don't know if I am suppose to assume the quantities then use algebra or something, there is a hint that says use a diagram to illustrate, not sure how that helps.
a) What is P if Q = 5, answer is $275
b) What is Q if P = $200, answer is 42.5
c) This one is confusing me, it asks what is price elasticity of demand if price equals $200, I know PEoD = change in Q / change in P but the question doesn't say anything about question a so I'm assuming part a relates to part c? My answer for this is -27.5.
d) What is the price if PEoD= -1 (or unitary elasticity). This is the main one I'm stuck on. I don't know if I am suppose to assume the quantities then use algebra or something, there is a hint that says use a diagram to illustrate, not sure how that helps.