po demand function, compute the elasticity, and graph the elasticity. For what prices is the demand f elastic and inelastic? 2. Show that the general linear demand function D(p) = a - bp, where a and b are positive real numb poroncing octicity for
po demand function, compute the elasticity, and graph the elasticity. For what prices is the demand f elastic and inelastic? 2. Show that the general linear demand function D(p) = a - bp, where a and b are positive real numb poroncing octicity for
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:11. The demand for processed pork in Canada is described by the function D(p) = 286 – 20p¹. Graph the
demand function, compute the elasticity, and graph the elasticity. For what prices is the demand function
elastic and inelastic?
12. Show that the general linear demand function D(p) = a – bp, where a and b are positive real numbers, has a
decreasing elasticity for 0 ≤p < a/b. Show that for the general linear demand function, E = −1 when
p = a/2b.
13. Not all demand functions are linear. Compute the elasticity for the exponential demand function
D(p) =ae, where a and b are positive real numbers.
14. Show that the demand function D(p) =a/p', where a and b are positive real numbers, has a constant
elasticity for all positive prices.
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