1. ] A company has the demand equation, x = P , P-8 p>8 (where p is in dollars, and x is in units). a) Find the point elasticity of demand when the price is $12. b) Using your answer from a), determine the percentage change in demand that will occur if the price is decreased by 3% at the $12 level. c) Determine the prices for which the demand is elastic.
1. ] A company has the demand equation, x = P , P-8 p>8 (where p is in dollars, and x is in units). a) Find the point elasticity of demand when the price is $12. b) Using your answer from a), determine the percentage change in demand that will occur if the price is decreased by 3% at the $12 level. c) Determine the prices for which the demand is elastic.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1.
] A company has the demand equation, x = P
,
P-8
p>8 (where p is in dollars, and x is
in units).
a) Find the point elasticity of demand when the price is $12.
b) Using your answer from a), determine the percentage change in demand that will occur if the price
is decreased by 3% at the $12 level.
c) Determine the prices for which the demand is elastic.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c91576f-bc46-4f1d-b649-901651162f84%2F12d4af55-3be7-432b-a252-fae8f507ac36%2F3iek0e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1.
] A company has the demand equation, x = P
,
P-8
p>8 (where p is in dollars, and x is
in units).
a) Find the point elasticity of demand when the price is $12.
b) Using your answer from a), determine the percentage change in demand that will occur if the price
is decreased by 3% at the $12 level.
c) Determine the prices for which the demand is elastic.
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