By "already substituting the 3.6 in there", you have made it impossible to answer. We need to know the demand as a function of the proce.jweber said:q= (39/3.6)^2/3
p=(39/(3.6^3/2)
Find price elasticity of demand when p=$3.6. I already substituted the 3.6 in there.
I keep getting 1.5 but its saying it wrong please solve and help.
Price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or service to changes in its price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price.
Price elasticity of demand is important because it helps businesses and policymakers make decisions about pricing strategies and policies. It also allows for the prediction of how changes in price will impact consumer behavior and sales.
Several factors can affect price elasticity of demand, including the availability of substitutes, the necessity of the good or service, and the proportion of a consumer's income spent on the good or service. Additionally, goods and services that are considered luxury items tend to have a higher price elasticity of demand compared to necessities.
Elastic demand refers to a situation where a small change in price results in a significant change in the quantity demanded. In contrast, inelastic demand occurs when a change in price has little impact on the quantity demanded.
Businesses can use price elasticity of demand to determine the optimal price point for their products or services. By understanding the level of price sensitivity among consumers, businesses can adjust their pricing strategies to increase profits. For example, if a good or service has an inelastic demand, businesses can raise prices without experiencing a significant decrease in demand, resulting in higher profits.