5. The price p and the demand x for a product are related by the price-demand equationx = f(p) = 1,000 (40 – p)Find the elasticity of demand E(p) for the price-demand equation(A) E(8)(В) Е(30)(C) E(20) 6. A company produces x units of product A and y units of product B (both inhundreds per month). The monthly profit equation (in thousands of dollars) givenbyP(x, y) = -4x2 + 4xy – 3y? + 4x + 10y + 81(A) Find P,(1, 3) and interpret the results.(B) How many of each product should be produced eachmonth to maximize profit? What is the maximum profit?

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5. The price p and the demand x for a product are related by the price- demand equation x = f(p) = 1,000 (40 – p) Find the elasticity of demand E(p) for the price-demand equation (A) E(8) (B) E(30) (C) E(20)

5. The price p and the demand x for a product are related by the price- demand equation x = f(p) = 1,000 (40 – p) Find the elasticity of demand E(p) for the price-demand equation (A) E(8) (B) E(30) (C) E(20)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5. The price p and the demand x for a product are related by the price-
demand equation
x = f(p) = 1,000 (40 – p)
Find the elasticity of demand E(p) for the price-demand equation
(A) E(8)
(В) Е(30)
(C) E(20)

6. A company produces x units of product A and y units of product B (both in
hundreds per month). The monthly profit equation (in thousands of dollars) given
by
P(x, y) = -4x2 + 4xy – 3y? + 4x + 10y + 81
(A) Find P,(1, 3) and interpret the results.
(B) How many of each product should be produced each
month to maximize profit? What is the maximum profit?

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