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Anonymous
Anonymous asked in Social ScienceEconomics · 10 years ago

Help! Economics questions I dont understand?

1. The market demand function for fish is q=100-2p. If price the elasticity of demand for fish is unit elastic, what is the price of fish?

2. Suppose that, at the current price, the price elasticity of demand for cucumbers is unit elastic. If price decreases by 1%, by what percent will quantity demanded increase?

3. Suppose that the market demand function for tires is q=20-1p. At a price of 10, what is the price elasticity of demand?

I dont understand these three questions...can someone please help? Thank you so much in advance!

1 Answer

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  • Anonymous
    10 years ago
    Favorite Answer

    1. q=100-2p

    dq/dp=-2

    2(p/q)=1

    2p=100-2p

    4p=100

    p=25

    2. 1%

    3.q=20

    elasticity of demand=1x0/20=0

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