Respuesta :
Answera and Explanation:
% change in quantity demanded = (600 - 300)/[(600 + 300)/2]
= 67%
Therefore, The % change in quantity demanded is 67%.
% change in price = (10 - 40)/[(40 + 10)/2]
= -120%
Therefore, The % change in price is -120%
price elasticity of demand
= % change in quantity demanded/% change in price
= 67/-120
= -0.558
Therefore, The price elasticity of demand is -0.558.
The price elasticity of demand would be -0.558 when the price changes from $40 to $10 by using the formula of midpoint.
What is the price elasticity of demand?
A good's price elasticity of demand is a measurement of sensitiveness the quantity demanded is to its price. As per the law of demand, When the price rises, the quantity demanded falls for almost any good, but it falls more for some than for others.
Computation of price elasticity of demand:
Given,
Q1= 600,
Q2= 300,
P1= $40, and
P2=$10.
Percentage Change in Quantity Demanded:
[tex]\%\triangle\text{Quantity Demanded}=\dfrac{\frac{ Q_1-Q_2}{Q_1+Q_2}}{2}\\\\\\\%\triangle\text{Quantity Demanded}=\dfrac{\frac{(600-300)}{(600+300)} }{2}\\\\\\\%\triangle\text{Quantity Demanded}= 67\%.[/tex]
Percentage Change In Price:
[tex]\%\triangle\text{Price}=\dfrac{\frac{ P_1-P_2}{P_1+P_2}}{2}\\\\\\\%\triangle\text{Price}=\dfrac{\frac{(10-40)}{(10+40)} }{2}\\\\\\\%\triangle\text{Price}= -120\%.[/tex]
Then, The Price Elasticity Of Demand :
[tex]\text{Price Elasticity Of Demand} =\dfrac{ \%\triangle \text{Quantity Demanded}}{ \%\triangle \text{Price}} \\\\\\ \text{Price Elasticity Of Demand} =\dfrac{67\%}{(-120\%)}\\\\\\ \text{Price Elasticity Of Demand} =-0.558.[/tex]
Therefore, the price elasticity of demand would be -0.558.
Learn more about price elasticity of demand, refer to :
https://brainly.com/question/13380594