Calculate the price elasticity of demand at point A given two points on the demand curve: Point A (PA=60, QA=20) and Point B (PB=15, QB=40).

Here are the solutions to the questions.

Question One A: Price Elasticity of Demand

Given points:
Point A: $P_A = 60$, $Q_A = 20$
Point B: $P_B = 15$, $Q_B = 40$

I. The price elasticity of demand at point A (Point Elasticity)

Step 1: Calculate the change in quantity ($\Delta Q$) and change in price ($\Delta P$) between the two points.

$$\Delta Q = Q_B - Q_A = 40 - 20 = 20$$ $$$$