Given the demand function D(p) = 100 - 6p^2. Find the Elasticity of Demand at a price of $3. \\...


Given the demand function {eq}D(p) = 100 - 6p^2{/eq}. Find the Elasticity of Demand at a price of $3.

At this price, we would say the demand is:

a) Elastic

b) Unitary

c) Inelastic

Based on this, to increase revenue we should:

a) Keep Prices Unchanged

b) Lower Prices

c) Raise Prices

Price Elasticity of Demand:

PED measures the responsiveness of the quantity demanded with the change in price. It shows us whether the percentage change in demand for the product would be lower or greater than the percentage change in price.

Answer and Explanation: 1

Become a member to unlock this answer! Create your account

View this answer

Before finding the elasticity function, we'll first find the derivative of the demand function with respect to p.

{eq}D=100-6p^2\\ D'=-12p {/eq}


See full answer below.

Learn more about this topic:

Elastic Demand: Definition, Formula & Examples


Chapter 3 / Lesson 12

In this lesson, you will be introduced to the concept of an elastic demand and how to determine if the demand is elastic. Two methods will be presented along with examples.

Related to this Question

Explore our homework questions and answers library