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

Question:

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

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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}

N...

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Elastic Demand: Definition, Formula & Examples

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Chapter 3 / Lesson 12
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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.


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