The British Automobile Company is introducing a brand new model called the "London Special." Using the latest forecasting techniques, BAC economists have developed the following demand function for the "London Special":
Qd = 1,200,000 - 40P
What is the point price elasticity of demand at prices of:
The formula for calculating price elasticity is
elasticity = ...
This solution contains step-by-step calculations to determine the point price elasticity demand at specific prices.