Demand with Constant Price Elasticity

Drag the price up and down to see how the price elasticity at point A changes...or doesn't...


{{error}}

demand parameters
Q^D(P) = aP^{-b}

a = {{ params.a | number : 0}}
b = {{ params.b | number : 2}}
P = {{ params.price }}

Q^D(P) = aP^{-b} = {{ model.quantityAtPrice(params.price) | number:2 }}

\frac{dQ^D}{dP} = -abP^{-b-1} = {{ model.inverseSlopeAtPrice(params.price) | number:2 }}

\epsilon_{Q^D,P} = \color{ {{ color('green') }} }{ \frac{dQ^D}{dP} } \times \frac{P}{\color{ {{color('demand')}} }{Q^D(P)}} || = \color{ {{ color('green') }} }{ {{ model.inverseSlopeAtPrice(params.price) | number:2 }} } \times \frac{ {{ params.price | number:0 }} }{ \color{ {{color('demand')}} }{ {{ model.quantityAtPrice(params.price) | number:2 }} } }|| = -{{ params.b | number: 2 }}
Copyright (c) Christopher Makler / econgraphs.org