The question is, what is the for Math formula to show rather the demand of apples is Elastic, Inelastic, or Unitary Elastic

Thank You

Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure to show the work.

If the percent drop in consumption exceeds the percent increase in price. the demand is elastic. That is the case in your example.

See

http://en.wikipedia.org/wiki/Price_elasticity_of_demand

Could you please show me the workout on this ? Thank You

Price elasticity is the percentage change in price divided by the percentage change in quantity.

%change in P = 100*(.50/3.50) =14.29
%change in Q = 100*(-10/30) = -33.33

Elasticity therefore is -33.33/14.29 = -2.33
Since elasticity is > 1 (absolute value) it is elastic.

(Note: some economists prefer the mid-point method for calculating percentage change. here %change P is .5/3.75 and %change Q is -10/25).

Thank You :)

To determine the price elasticity of demand, you can use the formula:

Price elasticity of demand (PED) = (Percentage change in quantity demanded) / (Percentage change in price)

First, calculate the percentage change in quantity demanded:
Change in quantity demanded = Initial quantity demanded - Final quantity demanded
= 30 pounds - 20 pounds = 10 pounds

Percentage change in quantity demanded = (Change in quantity demanded / Initial quantity demanded) × 100
= (10 pounds / 30 pounds) × 100
≈ 33.33%

Next, calculate the percentage change in price:
Change in price = Final price - Initial price
= $4.00 - $3.50 = $0.50

Percentage change in price = (Change in price / Initial price) × 100
= ($0.50 / $3.50) × 100
≈ 14.29%

Now, apply these values to the price elasticity of demand formula:
PED = (Percentage change in quantity demanded) / (Percentage change in price)
= 33.33% / 14.29%
≈ 2.33

Interpreting the result:
Since the price elasticity of demand (PED) value is greater than 1 (2.33), it indicates that the demand for apples is elastic. This means that a change in price has a relatively larger effect on the quantity demanded of apples. In this case, a 1% increase in price would result in approximately a 2.33% decrease in quantity demanded.