The demand curve for a product is q = 50 – 0.5p. what is the price elasticity of demand at a price of $60?

-1.5

Explanation:

              Q = 50 – 0.5P

The formula for elasticity of demand is

              E   = -P/Q x dQ/dP

To find dQ/dP you need to differentiate Q with respect to p.

       dQ/dP  = -0.5

When      P   = 60

                Q  =  50 - 0.5(60)

                Q  =  50 - 30

                Q  =  20

                 E  = -P/Q x dQ/dP

                 P  = 60

                 Q  =  20

          dQ/dP = -0.5

                 E   = -60/20 x (-0.5)

                 E   = -3 x (-0.5)

                  E   = -1.5

im thinking a but im not 100% sure

explanation:

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy