Question

In: Economics

The​ price-demand equation for a particular product is f(p)=850−3p2. The elasticity of demand of this product...

The​ price-demand equation for a particular product is

f(p)=850−3p2.

The elasticity of demand of this product at a price of

​$13

is?

Solutions

Expert Solution

f(p)= q = 850- 3p2

When p = 13, q = 850-3*169 = 343

Elasticity of demand indicates the % change in quantity demanded in response to a % change in price.

So,

Elasticity of demand= (dq/dp)*(p/q) = (-6p)*(13/343) = (-6*13)*(13/343) = -2.96

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

The​ price-demand equation for a particular product is f(p)=850−3p2. At a price of ​$14 is this...
The​ price-demand equation for a particular product is f(p)=850−3p2. At a price of ​$14 is this product​ elastic, inelastic, or unit​ elastic?
The price elasticity of demand for product A is 2.32. The price elasticity of demand for...
The price elasticity of demand for product A is 2.32. The price elasticity of demand for product Z is 0.12. This difference could be due to the fact that A. there are many good substitutes for product A and few substitutes for product Z. B. there are many good substitutes for product Z and few substitutes for product A. C. product A is a necessity and product Z is a luxury. D. product Z is a necessity and product A...
8. [Own Price Elasticity of Demand] Given a demand function Q = f(P), the own price...
8. [Own Price Elasticity of Demand] Given a demand function Q = f(P), the own price elasticity of demand is defined as ? = (dQ/dP) · (P/Q) What is the own price elasticity of demand ? (a) for the linear demand function Q = 100?5P when P = 10. (b) for the linear inverse demand function P = 100?4Q when (i) Q = 10; (ii) Q = 20; (iii) Q = 12.5. (c) for the demand function Q = P...
A product has unit elasticity of demand when the price elasticity of demand is A. less...
A product has unit elasticity of demand when the price elasticity of demand is A. less than 1. B. equal to 0. C. equal to 1. D. greater than 1.
The price elasticity of demand equals the slope of the demand curve. t/f
can you help me with these microeconomics t/f questions.The price elasticity of demand equals the slope of the demand curve. t/fthe larger the portion of a persons total budget spent on a good, the more inelastic the demand for the good. t/fif the demand for farm products is income elastic; that would mean that farm products were necessity. t/ffor hockey memorabilia fans, the puck with which Sidney Crosby scored the Golden Goal in 2010 is perfectly elastic In supply. t/fif...
The price elasticity of demand is a measure of how much the demand for a product...
The price elasticity of demand is a measure of how much the demand for a product is affected by a change in price. Review the following scenario and answer the questions that follow. Evelyn makes $15,000 per year and Tami makes $150,000 per year. They are both buying roast beef at the grocery store. Evelyn asks for $10 worth of roast beef, and Tami asks for 10 pounds of roast beef. What is each consumer’s price elasticity of demand? Identify...
Suppose the demand equation for bicycles is P = 1900 – 20QD. Calculate the elasticity of...
Suppose the demand equation for bicycles is P = 1900 – 20QD. Calculate the elasticity of demand between the quantity demanded of 40 and 50
In general, the price elasticity of demand for a product will be greater (a) the larger...
In general, the price elasticity of demand for a product will be greater (a) the larger the number of close substitutes, (b) the greater the share of budget an item takes, (c) the more the item is considered to be a luxury, and (d) the narrower the market is defined (for example, a specific brand name vs. an entire market). Costco (www.costco.com) posts its sales (discount) items. Select at least 5 sales items, and evaluate the price elasticity of demand...
Determine the price elasticity of demand, the cross-price elasticity of demand or the income elasticity in...
Determine the price elasticity of demand, the cross-price elasticity of demand or the income elasticity in the following scenarios a.  Consider the market for coffee. Suppose the price rises from $4 to $6 and quantity demanded falls from 120 to 80. What is price elasticity of demand? Is coffee elastic or inelastic? b.  John’s income rises from $20,000 to $22,000 and the quantity of hamburger he buys each week falls from 2 pounds to 1 pound. What his income elasticity? Is hamburger...
The price elasticity of the demand for gasoline is .02. The price elasticity of demand for...
The price elasticity of the demand for gasoline is .02. The price elasticity of demand for gasoline at Joe’s service station is 1.2. Explain what might account for the difference in elasticities.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT