# Price Elasticity

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1. A market consists of two individuals. Their demand equations are Q1 = 16-4P and Q2 = 20-2P respectively.

a. What is the market demand equation?

b. At a price of $2, what is the point price elasticity for each person and for the market?

https://brainmass.com/economics/elasticity/market-demand-equation-price-elasticity-125557

#### Solution Preview

Answer (a):

The market demand is the sum of two individual demand functions:

Q = 36 - 6P.

Answer (b):

At price $2

Q1 = 16 - 4x2 = 8

Q2 = 20 - ...

#### Solution Summary

The solution calculates the elasticity of demand for the scenario given.

$2.49