I have to determine the own price elasticity of demand with the following info given 1n Qdx = 3 - 0.5 1n Px - 2.5 in Py + 1nM + 2 1n A where Px=$10, Py = $4, M = $20,000 and A = $ 250. Where do I begin?

Thank you

Begin by defining elasticity in mathematical terms of some derivative. Then recognize that what you call "1n" is probably the natural log "ln".

The definition of price elasticity of demand is -d(lnQ)/d(lnP). Q represents demand

You have not defined M, Px and Py. I'm afraid that's as far as I can go with your question.

I would like to make a arc elasticity chart. We have a team project and would like to add in a arc elasticity demand to the paper.

To solve for the own price elasticity of demand (E), you will need to use the given information and formula. The formula for own price elasticity of demand is:

E = (% change in quantity demanded) / (% change in price)

To find the percentage change in quantity demanded and price, you will need to use the given equation:

1n(Qdx) = 3 - 0.5 * 1n(Px) - 2.5 * 1n(Py) + 1n(M) + 2 * 1n(A)

Now, let's break down the steps to calculate the own price elasticity of demand:

Step 1: Substitute the given values into the equation.

The given values:
Px = $10,
Py = $4,
M = $20,000,
A = $250

Substituting these values into the equation gives:

1n(Qdx) = 3 - 0.5 * 1n($10) - 2.5 * 1n($4) + 1n($20,000) + 2 * 1n($250)

Step 2: Evaluate the natural logarithm expressions.

Use a calculator or software that has a natural logarithm function (ln) to evaluate the expressions. For example, 1n($10) is equal to the natural logarithm of $10.

Step 3: Calculate the natural logarithm expressions.

Evaluate the natural logarithm expressions using the calculator or software:

1n($10) = ln($10)
1n($4) = ln($4)
1n($20,000) = ln($20,000)
1n($250) = ln($250)

Step 4: Substitute the calculated values back into the equation.

Substitute the calculated values of the natural logarithm expressions back into the original equation:

1n(Qdx) = 3 - 0.5 * ln($10) - 2.5 * ln($4) + ln($20,000) + 2 * ln($250)

Step 5: Solve for Qdx.

Solve the equation for the desired variable Qdx. This may involve rearranging the equation if necessary.

This process will give you a value for 1n(Qdx).

Step 6: Determine the percentage change in quantity demanded and price.

Now that you have the value for 1n(Qdx), you can calculate the percentage change in quantity demanded. To do this:

Calculate the value of Qdx when the price changes. Let's say you increase the price from $10 to $12, so you would plug in the new price into the equation. Calculate 1n(Qdx) using the new price.

Calculate the percentage change in Qdx by subtracting the initial value of 1n(Qdx) from the new value and dividing it by the initial value. Multiply the result by 100 to get the percentage value.

Similarly, calculate the percentage change in price by dividing the change in price by the initial value and multiplying by 100.

Step 7: Calculate the own price elasticity of demand.

Finally, calculate the own price elasticity of demand (E) using the formula:

E = (% change in quantity demanded) / (% change in price)

Substitute the calculated percentage changes into the formula to find the own price elasticity of demand.

By following these steps, you will be able to determine the own price elasticity of demand using the given information and formula.