Elasticity of Demand

[sam.sim]

Hi, guys I dont understand how to do this elastic worksheet. Any help will be greatly appreciated.

 

[firemath]

Please follow the rules of posting on this forum as enunciated at "Read Before Posting."
What have you done so far?

 

[sam.sim]

Oh sorry. I have done questions 1 and 2 for case study 1. Im stuck on question 3 I did the calculations but im getting 0.66 but that seems wrong because the price is increasing so elasticty should be more than 1. can you check and see what im doing wrong. Thanks

 

[firemath]

But the game in problem #3 is a whole new game....it has a new price tag....so plug that into your formula instead.
Is that what you are asking?

 

[sam.sim]

im asking about question 3 from the first case study

 

[sam.sim]

its at the top of the second page (movie rental)

 

[firemath]

im asking about question 3 from the first case study

Ok. Sorry.

 

[firemath]

Elastacity of demand equation uses the demand on the top. I believe that you may have switched the two.

 

[sam.sim]

yes the demand was 251 and 167 I put them on the top.