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price demand equation. x=f(P)=160-35lnp to find E(p)

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price demand equation. x=f(P)=160-35lnp to find E(p)

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The price elasticity is to be found.

`E(p) =` change is quantity/ change in price `= (Deltax)/(Deltap)`

or in other words, we have to find the derivative `(dx)/(dp)`

`(dx)/(dp) = -35 xx 1/p`

 

Therefore,

`E(p) = -35/p`

 

 

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