Math Problem Statement
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Solution
The image shows values and an equation that appears to set up the calculation of the price elasticity of demand. The values are:
The formula below these values:
This formula resembles a setup for calculating the slope of a line between two points, or, in economics, the midpoint formula for elasticity. The elasticity of demand is often calculated using the formula:
Using the values given, let's solve for the slope between and using:
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Step 1: Calculate the change in quantity ():
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Step 2: Calculate the change in price ():
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Step 3: Substitute these values:
So, the slope (or rate of change in quantity with respect to price) is .
Would you like further explanation on elasticity or related concepts?
Here are some related questions:
- What does a slope of 0.5 imply about the relationship between price and quantity?
- How is elasticity different from slope in economics?
- How can we use this slope to calculate the price elasticity of demand?
- What would happen if were smaller than ?
- What is the midpoint formula, and how does it differ from this approach?
Tip: In economics, elasticity calculations often use percentage changes rather than absolute changes to capture responsiveness.
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Math Problem Analysis
Mathematical Concepts
Elasticity of Demand
Slope Calculation
Formulas
(Q - Q1) / (P - P1) = (Q2 - Q1) / (P2 - P1)
Elasticity = (ΔQ / Q_average) / (ΔP / P_average)
Theorems
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Suitable Grade Level
High School Economics or Algebra
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