Hi guys, I know this will be a really silly Q but I just cannot understand it.
For any of you that know some economics, I understand that PED using calculus = dQ/dP x P/Q
Q = 60 - 3P and so am I right in thinking that the derivative of Q (dQ) is equal to -3?
We are asked to find the PED when price (P) is equal to 15 so am I also write in thinking that the derivative of P (dP) is 0? According to the constant rule, the derivative of any constant is always 0.
Therefore, surely dQ/dP is the same as -3/0? and I know you cannot divide by 0?
the is really bugging me and I know I'm probably making a very silly mistake but I hope someone can help me out.
Also the book I'm using says that dQ/dP is -3 which is confusing because does that mean they're are just disregarding the fact that the derivative of 15 = 0?
Many thanks,
Student
For any of you that know some economics, I understand that PED using calculus = dQ/dP x P/Q
Q = 60 - 3P and so am I right in thinking that the derivative of Q (dQ) is equal to -3?
We are asked to find the PED when price (P) is equal to 15 so am I also write in thinking that the derivative of P (dP) is 0? According to the constant rule, the derivative of any constant is always 0.
Therefore, surely dQ/dP is the same as -3/0? and I know you cannot divide by 0?
the is really bugging me and I know I'm probably making a very silly mistake but I hope someone can help me out.
Also the book I'm using says that dQ/dP is -3 which is confusing because does that mean they're are just disregarding the fact that the derivative of 15 = 0?
Many thanks,
Student