# 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

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

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

Need a fast expert's response?

Submit orderand get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

## Comments

Assignment Expert16.02.18, 15:57Dear Zulfiqar,

You're welcome. We are glad to be helpful.

If you liked our service please press like-button beside answer field. Thank you!

zulfiqar15.02.18, 22:18Nice way Nice Answer very early

## Leave a comment