Leaving Cert Economics Elasticity: The formula for measuring Price

The formula for measuring Price Elasticity of Demand is as follows; $$\frac{\Delta Q}{\Delta P} \times \frac{P_1 + P_2}{Q_1 + Q_2}$$ Complete the following table to indicate what each of the above symbols stands for: | Symbol | Description | |--------|-------------| | $\Delta Q$ | Change in the quantity demanded of the good - Leaving Cert Economics - Question 6 - 2012

Question 6

$The-formula-for-measuring-Price-Elasticity-of-Demand-is-as-follows;--$$\frac{\Delta-Q}{\Delta-P}-\times-\frac{P_1-+-P_2}{Q_1-+-Q_2}$$--Complete-the-following-table-to-indicate-what-each-of-the-above-symbols-stands-for:--|-Symbol-|-Description-|-|--------|-------------|-|-$\Delta-Q$-|-Change-in-the-quantity-demanded-of-the-good-Leaving Cert Economics-Question 6-2012.png$

The formula for measuring Price Elasticity of Demand is as follows; $$\frac{\Delta Q}{\Delta P} \times \frac{P_1 + P_2}{Q_1 + Q_2}$$ Complete the following table t... show full transcript

Worked Solution & Example Answer:The formula for measuring Price Elasticity of Demand is as follows; $$\frac{\Delta Q}{\Delta P} \times \frac{P_1 + P_2}{Q_1 + Q_2}$$ Complete the following table to indicate what each of the above symbols stands for: | Symbol | Description | |--------|-------------| | $\Delta Q$ | Change in the quantity demanded of the good - Leaving Cert Economics - Question 6 - 2012

Step 1

$\Delta Q$

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114 rated

Answer

Change in the quantity demanded of the good.

Step 2

$\Delta P$

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Answer

Change in price.

Step 3

$P_1$

96%

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Answer

Original price.

Step 4

$P_2$

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Answer

New / Current Price.

Step 5

$Q_1$

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Answer

Original quantity of the good demanded.

Step 6

$Q_2$

97%

121 rated

Answer

New / current quantity of the good.

$\Delta Q$

$\Delta P$

$P_1$

$P_2$

$Q_1$

$Q_2$

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