Suppose that the price per unit p as a function of the demand is p=√1056 - 2x.(a) Calculate the price elasticity of demand when = 305.305therefore the demand is elastic1056 - 2(305)n =(b) Calculate the price elasticity of demand when x = 406.4061056 - 2(406)η =therefore the demand is inelastic(c) Find the demand x that gives unit elasticity.x = 528

Price elasticity of demand measures how much a consumer will change the quantity demanded of a good…

(a) Calculate the price elasticity of demand when * = 305. η = 305 1056-2(305) therefore the demand is elastic (b) Calculate the price elasticity of demand when * = 406. 406 η = therefore the demand is inelastic 1056 - 2(406) (c) Find the demand that gives unit elasticity.

(a) Calculate the price elasticity of demand when * = 305. η = 305 1056-2(305) therefore the demand is elastic (b) Calculate the price elasticity of demand when * = 406. 406 η = therefore the demand is inelastic 1056 - 2(406) (c) Find the demand that gives unit elasticity.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

Suppose that the price per unit p as a function of the demand is p=√1056 - 2x.
(a) Calculate the price elasticity of demand when = 305.
305
therefore the demand is elastic
1056 - 2(305)
n =
(b) Calculate the price elasticity of demand when x = 406.
406
1056 - 2(406)
η =
therefore the demand is inelastic
(c) Find the demand x that gives unit elasticity.
x = 528

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Step 2: (a) Calculate the price elasticity of demand when x = 305.

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Step 3: (b) Calculate the price elasticity of demand when x = 406.

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Step 4: (c) Find the demand x that gives unit elasticity.

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