A demand function is modeled by a X = where a is a constant and m > 1. Show that n = -m. In other words, show that a 1% increase in price results in an m% decrease in the quantity demanded. STEP 1: Begin by differentiating the equation of x with respect to p. dp pm + 1 am 1 = dx dp %3D dx STEP 2: Find the price elasticity of demand. do dx a pm + 1

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