# Calculation of Price Elasticity of Demand

Question

Given the following demand function:
Q = 2.0 P-1.33 Y2.0 A0.66

Where:

Q = quantity demanded (thousands of units)
P = price (\$/unit)
Y = disposable income per capita (\$ thousand)
A = advertising expenditures (\$ thousand)

Determine the following when P = \$2/unit, Y = \$8 (i.e., \$8000), and A = \$25 (i.e., \$25,000)

Find Price elasticity of demand?

Summary

This question belongs to micro economics and discusses about Price elasticity of demand

Total Word Count 150

### Comments

• Rasha

this is a very good website

• maani

I have 50 questions for the same test your page is showing only 28

• joeanne

hi can you please help or guide me to answer my assignments. thanks

• joeanne

hi can anyone help or guide me to my assignments. thanks

• Monik

• Cristina

This solution is perfect ...thanks

• Janete

Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

• Sandeep

Perfect bank of solution.

• Oxana

great !

• Paul Brandon-Fritzius

thanks for the quick response. the solution looks good. :)

• tina Johnson

thnx for the answer. it was perfect. just the way i wanted it.

• Giuseppe

works fine.