Question #74291

The demand equation for a product is given by
P = 30 - 0.1q^2 .
(a)At what point price is demand inelastic?
(b)at what price is demand unitary elastic

Expert's answer

(a) At what point price is demand inelastic?

Answer:

P for q = 15 is;

P=30-0.1*〖15〗^2⇨$7.5

E_p=-1*7.5/15⇨-0.5

As demand is inelastic, when price is $7.5 and quantity demanded is 15.

(b) At what price is demand unitary elastic

Answer:

P=30-0.1q^2

MR=30-0.3q^2

MR = 0, so q is:

30-0.3q^2=0

q^2 =30/0.3=100

q = 10

Then, demand unitary elastic when price is:

P=30-0.1〖*10〗^2

P = $20

## Comments

Assignment Expert03.01.19, 18:36Dear visitor,

please use panel for submitting new questions

Nana prempeh03.01.19, 02:37The demands equation is given by P=30-0.1Q^2.what what price is demand unitary elastic

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