Suppose that the price per unit p as a function of the demand x is p = 478.8 -0.9x. (a) Calculate the price elasticity of demand when x = 132. n = -2.44, therefore the demand is elastic (b) Calculate the price elasticity of demand when * = 425. n = -0.202 therefore the demand is inelastic (c) Find the demand that gives unit elasticity. = 266.0

Suppose that the price per unit p as a function of the demand x is p = 478.8 -0.9x. (a) Calculate the price elasticity of demand when x = 132. n = -2.44, therefore the demand is elastic (b) Calculate the price elasticity of demand when * = 425. n = -0.202 therefore the demand is inelastic (c) Find the demand that gives unit elasticity. = 266.0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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