The demand curve for a product is Q = 50 - 0.5P. What is the price elasticity of demand at a price of $60?

-1.5

Explanation:

Q = 50 - 0.5P

The formula for elasticity of demand is

E = - P/Q x dQ/dP

To find dQ/dP you need to differentiate Q with respect to p.

dQ/dP = - 0.5

When P = 60

Q = 50 - 0.5 (60)

Q = 50 - 30

Q = 20

E = - P/Q x dQ/dP

P = 60

Q = 20

dQ/dP = - 0.5

E = - 60/20 x (-0.5)

E = - 3 x (-0.5)

E = - 1.5