Compute the elasticity of demand for the demand curve p = ...

[daltonest1984]

Compute the elasticity of demand for the demand curve p = 15Q-0.7. Does the elasticity vary with the price?
 
  What will be an ideal response?

Question 2

Joe's budget constraint equals 500 = 2F + 100S, where 500 is Joe's income, 2 is the price of food (F, y-axis) and 100 is the price of shelter (S, x-axis). How much food can Joe buy if he buys one unit of shelter?
 
  A) 2 units
  B) 200 units
  C) 250 units
  D) 400 units

[JYan]

Answer to Question 1

For constant elasticity demand as this, the elasticity is the same throughout the demand curve. E = -0.7

Answer to Question 2

B

[daltonest1984]

Great answer, keep it coming

[jojobee318]

Thanks for the timely response, appreciate it