If demand function for a product is Qd = 30 - 4P, and the price and quantity of products is 4 and 14 respectively. What is the price elasticity of demand for the product?
1.14
7.1
14.1
1.7
Correct answer is A
Q = 14, P = 4
Qd = 30 - 4p
∆q/∆p = - 4
Ed = ΔqΔp×pq
= - 4 x 4/14
= Ed = -1.14
since price elasticity is positive, then Ed = 1.14