Concept explainers
Elasticity of demand
a. In Section 3.4, we defined the elasticity of demand at price p as
Where f is a differentiable demand function x = f(p). Show that
b. The demand function of a product is
where p is the unit price in dollars and x is the quantity demanded, measured in units of a thousand. Use the result of part (a) to find the elasticity of demand.
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Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
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