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

P’ = -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

## Comments

Assignment Expert26.11.18, 12:07Dear visitor,

please use panel for submitting new questions

Ali25.11.18, 18:50p =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 Expert16.02.18, 15:57Dear Zulfiqar,

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

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