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

5587 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Examine the desirability of a fixed exchange rate regime amongst the world's major economies.


When would a reduction in the base rate of interest by the MPC be appropriate, and why?


What are the potential disadvantages of Trades Unions?


How can changes in the interest rate affect aggregate demand?


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:

© 2026 by IXL Learning