Desperately Need Some Econ Help.. Watch

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Sophdoph
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#1
Report Thread starter 14 years ago
#1
I'm currently struggling through my Maths unit for Economics and was after some help if anybody could

I'm caculating Price Elasticity of Demand using calculus (partial differentials etc.)

The following question has me stumped..

"Calculate the PED for each of the following demand functions at Q = 100, 500, 900.

i) Q = 1800 - 0.0P
ii) P = 60 - 0.5Q

Any help most appreciated
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bluebird
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Report 13 years ago
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Explain the question better.
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danmint
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:confused: You're gonna need change in price also...
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Splinter
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i may be wrong here but you can work out P by using Q. If Q is 100, then P = 60 - 50 = 10.

Otherwise, i still dont get what you are asking, can you try and better explain the question
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babyboo
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use the formula delta Q over delta P multiplied by 1 over slope!
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petemc246
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(Original post by Sophdoph)
I'm currently struggling through my Maths unit for Economics and was after some help if anybody could

I'm caculating Price Elasticity of Demand using calculus (partial differentials etc.)

The following question has me stumped..

"Calculate the PED for each of the following demand functions at Q = 100, 500, 900.

i) Q = 1800 - 0.0P
ii) P = 60 - 0.5Q

Any help most appreciated
Surely Q is always equal to 1800 in the first part, as it's 0.0 times P, which = 0. unless the question is written down wrong. if the actual question is true as it stands, then i) is perfectly inelastic as there is fixed demand of 1800, regardless of price, so the PED is (-) infinity.
Btw, i don't actually study economics and have never covered the above, this is all just a guess from maths.
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Lucky number 8
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P.E.D = P / (mQ), where P= price, Q= output and m= gradient.

Calculate the gradient of each curve by differentiating (will mean to have each function in terms of P = .....)
you must then put Q into the equation of the differenitial to get the gradient at that point. Then put P, Q and m into the above equation.

Easy, hope this helps
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Sophdoph
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#8
Report Thread starter 13 years ago
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Thanks for the help..had to hand ages ago unfortunately. Finally worked it out, was quite badly worded and things..
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