Explanation Given: The equation is p = 169 − x 2 and the value of p is 29 . Definition used: (1) If the value of E ( p ) > 1 then the demand is said to be elastic. (2) If the value of E ( p ) = 1 then the demand is said to be unitary. (3) If the value of E ( p ) < 1 then the demand is said to inelastic. Formula used: The elasticity of demand is given by the relation, E ( p ) = − p f ' ( p ) f ( p ) (1) Calculation: Rewrite the given equation as a function of p , p = 169 − x 2 x 2 = 169 − p x = f ( p ) x = 169 − p Differentiate the function with respect to p , f ' ( p ) = d d p ( 169 − p ) = 1 2 169 − p ⋅ d d p ( 169 − p ) = ( − 1 ) 2 169 − p ( ∵ d d x ( x ) n = n x n − 1 )

10th Edition

ISBN: 9781337825597

Author: Tan

Publisher: INTER CENG

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Chapter 3.4, Problem 31E

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The elasticity of demand and find whether the demand is elastic, unitary or inelastic.

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Chapter 3.4, Problem 30E

Chapter 3.4, Problem 32E

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The elasticity of demand and find whether the demand is elastic, unitary or inelastic.

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