Answered: Suppose the demand curve for tea is…

Suppose the demand curve for tea is given by q = 40 p2, where p is the price per cup. If the price per cup is $3, then the price elasticity of demand for tea is:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose the demand curve for tea is given by q = 40 p², where p is the price per cup. If the price
per cup is $3, then the price elasticity of demand for tea is:
O-1
O
-3
O-2
-0.5

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