Nur R.

asked • 01/13/21

based on market demand and total expenditure

Hatta Enterprises has developed a new product. The market demand for this product is given as follows:

QD = 240 - 4P

i. If the product is priced at $40, estimate the price elasticity of demand? Is demand elastic or inelastic?

(10 marks)

ii. If the product price is increased slightly from $40, what will happen to the total expenditure on the product?

(10 marks)

i have read many notes to answer this types of question but it just give me more confuse so i really need help

1 Expert Answer


Laura M. answered • 01/13/21

5 (12)

Tutor specializing in Economics and Mathematics

Still looking for help? Get the right answer, fast.

Ask a question for free

Get a free answer to a quick problem.
Most questions answered within 4 hours.


Find an Online Tutor Now

Choose an expert and meet online. No packages or subscriptions, pay only for the time you need.