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 1 year ago
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