On the right, here, in John\'s demand curve for shirts. Use this to answer quest

Question

On the right, here, in John's demand curve for shirts. Use this to answer questions Write the equation for John's demand curve with P as the dependent variable P Write the equation for John's, demand curve with Q as the dependent variable When the Price is $4 John how mam shirts will John offer to buy ? At what price will John offer to buy 5 shirts? If shirts were free, John would demand Q^- What is the elasticity of John's demand when Prior $60 ? What is the elasticity of John's demand curve at Q 19?

Explanation / Answer

1) P = 80-4Q (intercept fo Y axis-Slope of the curve )

2) Q = 20-0.25P (Intercept fo X axis- Slope of the curve)

3) When P = $4 then Q = 20-0.25(4) = 20-1 = 19 units

4) 5 = 20-0.25P

0.25P = 15

P = $60

5) If shirts were free, John would demand Q = 20 units (intercept of X axis)

6) At price - $60, Quantity = 5

Slope = -4

EDp = P/Q * inverse of slope of demand curve

60/5 * 0.25

3

EDp>1

7) When Q = 19, P = $ 4 slope = -4

elasticity of demand = P/Q*inverse of slope of demand curve

EDp = 4/19*0.25

16/19 = 0.84

Edp<1

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