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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

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

Calculus: Early Transcendentals
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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A demand function is modeled by
 
x = a / pm
 
where a is a constant and m > 1.Show that
? = −m.
 In other words, show that a 1% increase in price results in an m% decrease in the quantity demanded.
A demand function is modeled by 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. am dp 1 = pm + 1 dx dp dx STEP 2: Find the price elasticity of demand. dp dx a pm + 1 = -m
Transcribed Image Text:A demand function is modeled by 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. am dp 1 = pm + 1 dx dp dx STEP 2: Find the price elasticity of demand. dp dx a pm + 1 = -m
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