If John’s elasticity of demand for burgers is constantly 0.9, and he buys 4 burgers when the price is £1.50 per burger, how many will he buy when the price is £1.00 per burger

We are using elasticity to find quantity, instead of the other way around. We will plug in what we know, and solve from there. 

Elasticity = 
And, in the case of John, %Change in Quantity = (X – 4)/4 
Therefore : 
Elasticity = 0.9 = |((X – 4)/4)/(% Change in Price)| 
% Change in Price = (1.00 - 1.50)/(1.50) = -33% 
0.9 = |(X – 4)/4)/(-33%)| 
|((X - 4)/4)| = 0.3 
0.3 = (X - 4)/4 
X = 5.2 

Since John probably can't buy fractions of hot dogs, it looks like he will buy 5 hot dogs when the price drops to £1.00 per hot dog.

MS
Answered by Matthew S. Economics tutor

5411 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Consider Donald Trump chooses to raise import tariffs on Chinese Goods, what will be the impact on the US macroeconomic environment?


Discuss the impact that Brexit may upon the UK economy (25 marks)


What are the key components of Aggregate Demand?


How can you tell the difference between a positive and a normative statement?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning