Hey there! Sign in to join this conversationNew here? Join for free
x Turn on thread page Beta
 You are Here: Home

# Anyone know how to work out... watch

1. Hi, just wanted to know if anyone could help me with these price elasticity of demand economics questions?

1) calculate the value of Q1 when: P=20, P1=24, Q=1000 and price elasticity of demand= 0.75
2) If a price rises by 5%, Q=1000 and price elasticity=0.5, find Q1
3) If a price falls by 10%, Q=2000 and price elasticity=0.5, find Q1
4) If the Quantity demanded has fallen by 2.5%, P=£2.50 and price elasticity=0.25
What is P1?

Thanks in advance
2. (Original post by iTDR)
Hi, just wanted to know if anyone could help me with these price elasticity of demand economics questions?

1) calculate the value of Q1 when: P=20, P1=24, Q=1000 and price elasticity of demand= 0.75
2) If a price rises by 5%, Q=1000 and price elasticity=0.5, find Q1
3) If a price falls by 10%, Q=2000 and price elasticity=0.5, find Q1
4) If the Quantity demanded has fallen by 2.5%, P=£2.50 and price elasticity=0.25
What is P1?

Thanks in advance

1) % Change in P = 24 - 20 / 20 = 0.2 x 100 = 20%

PED Formula = % change in QD / % change in P
0.75 = X / 20
20 x 0.75 = 15
15 = X,
Therefore, % Change in QD = 15%
1000 X 1.15 = 1150
Value of Q1 = 1150.

Now using the template above answer your other 4 questions, using % change in X formula with PED Formula while rearranging equations.

Reply
Submit reply
Turn on thread page Beta
TSR Support Team

We have a brilliant team of more than 60 Support Team members looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

This forum is supported by:
Updated: November 8, 2015
Today on TSR

### Loughborough better than Cambridge

Loughborough at number one

### Can I date a girl with no boobs?

Poll
Useful resources

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.