AP1-a 1-a Suppose the demand function for smart phones is given by Q(P) : = where A> 0 and a > 1. Use calculus to show that the price elasticity is equal to 1-a everywhere along the whole curve. (Hint: Recall that if f(x) = x³, then f'(x) = ßxß-¹). Interpret this result.
AP1-a 1-a Suppose the demand function for smart phones is given by Q(P) : = where A> 0 and a > 1. Use calculus to show that the price elasticity is equal to 1-a everywhere along the whole curve. (Hint: Recall that if f(x) = x³, then f'(x) = ßxß-¹). Interpret this result.
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
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Transcribed Image Text:Suppose the demand function for smart phones is given by Q(P) =
AP¹-a
1-a
where A> 0 and
a > 1. Use calculus to show that the price elasticity is equal to 1 — a everywhere along the
whole curve. (Hint: Recall that if f(x) = x³, then ƒ'(x) = ßxß-¹). Interpret this result.
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