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Answer to Question #73532 in Economics of Enterprise for Zulfiqar Ali

Question #73532
The demand equation for a product is given by
P=30-0.1q2 .
(a)At what point price is demand inelastic?
(b)at what price is demand unitary elastic
Expert's answer
Pā€™ = -0.2q
dQ/dP = -1/0.2q

(a) E = (dQ/dP)*(P/Q)
p/0.2q^2 = 0
p=0 or Q = 0.

(b) E = (dQ/dP)*(P/Q) = 1
p/0.2q^2 = 1
p = 0.2q^2
For example:
p = 20. Q = 10

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Comments

Assignment Expert
26.11.18, 12:07

Dear visitor,
please use panel for submitting new questions

Ali
25.11.18, 18:50

p =30 - 0.1q2
a. write an equation for the point elasticity as a function of quantity?
b. At what price is demand unitary elastic?

Assignment Expert
16.02.18, 15:57

Dear Zulfiqar,

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zulfiqar
15.02.18, 22:18

Nice way Nice Answer very early

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