Where Q=number of lunches served and P=price n cents. Compute the point elasticity of demand for school lunches at a price of 40 cents per lunch.
a = -1.78
c = -262.7
d = 1.78© BrainMass Inc. brainmass.com October 10, 2019, 3:34 am ad1c9bdddf
Computing price elasticity requires historic data of both price and demand. I suspect some background information was omitted from your question, but the formula is as follows:
PE = [(Q2-Q1) / ((Q1+Q2) / 2 )] / ...
This solution contains step-by-step calculations to determine the price elasticity of demand for school lunches.