The demand function for Good X is Qd(p) = 1/2(p + 1)^2 . (a) Find the price elasticity of demand using the differential version of the formula and express the elasticity in terms of p only. (b) Based on the price elasticity of demand you find in (a), specify the values of p in which the demand for Good X is, respectively, elastic, unit elastic, and inelastic.

The demand function for Good X is Qd(p) = 1/2(p + 1)^2 . (a) Find the price elasticity of demand using the differential version of the formula and express the elasticity in terms of p only. (b) Based on the price elasticity of demand you find in (a), specify the values of p in which the demand for Good X is, respectively, elastic, unit elastic, and inelastic.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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