(c) Lara offers 100 autograph bats. If each is priced at p dollars, it is that the demand curve dq . dp for the bast will be p = 250 If price elasticily is E(p) : 4 When |E(p)| < 1, q demand is inelastic and when |E(p)| > 1, demand is elastic. (i) Find the price elasticity of demand for Lara's bats. (ii) Is demand inelastic or elastic?
(c) Lara offers 100 autograph bats. If each is priced at p dollars, it is that the demand curve dq . dp for the bast will be p = 250 If price elasticily is E(p) : 4 When |E(p)| < 1, q demand is inelastic and when |E(p)| > 1, demand is elastic. (i) Find the price elasticity of demand for Lara's bats. (ii) Is demand inelastic or elastic?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Good afternoon
Pleae answer i and ii
![(c) Lara offers 100 autograph bats. If each is priced at p dollars, it is that the demand curve
dq dp
-4. If price elasticily is E(p) :
4
When |E(p)| < 1,
p
for the bast will be p = 250
demand is inelastic and when |E(p)|> 1, demand is elastic.
(i) Find the price elasticity of demand for Lara's bats.
(ii) Is demand inelastic or elastic?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e4e967a-7ffb-4874-9ad4-0a410b428b78%2Fc6bca6bc-f935-4176-bc89-4dce7a491850%2Fge99ipb_processed.png&w=3840&q=75)
Transcribed Image Text:(c) Lara offers 100 autograph bats. If each is priced at p dollars, it is that the demand curve
dq dp
-4. If price elasticily is E(p) :
4
When |E(p)| < 1,
p
for the bast will be p = 250
demand is inelastic and when |E(p)|> 1, demand is elastic.
(i) Find the price elasticity of demand for Lara's bats.
(ii) Is demand inelastic or elastic?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1
c)i) p= 250-q/4
Writing the demand equation in terms of p,
q/4=250-p
q=1000-4p
finding the first order derivative
dq/dp= -4
The price elasticity of demand is given as
Ed= (dq/q)/(dp/p)
= dq/dp*p/q
where dq/dp is the slope of the demand curve
q= 100
p= 250-q/4
p=250-100/4
=250-25
=225
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