For the following demand equation compute the elasticity of demand and determine whether the...

Question:

For the following demand equation compute the elasticity of demand and determine whether the demand is elastic, unitary, or inelastic at the indicated price. (Round your answer to three decimal places.)

{eq}p(x) \, =\, 181\, -\, x^2\, ;\, p(x)\, =\, 39 {/eq}

Calculating Elasticity using Calculus:

Price elasticity of demand is calculated by multiplying the slope of demand times the ratio of price divided by quantity. The slope of the demand curve is the partial derivative of demand function with respect to price.

Answer and Explanation: 1

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First we will calculate quantity demanded when price is 39. We plug 39 into p to find quantity demanded x.

{eq}p(x) \, =\, 181\, -\, x^2\, \\ 39 \,...

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Price Elasticity of Demand in Microeconomics

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Chapter 2 / Lesson 11
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In microeconomics, the principle of price elasticity of demand is important to understand. Learn the definition of price elasticity of demand, understand the formula and its categories, and see some calculation examples.


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