Please do this problem step-by-step so I can make sure I did this problem right. 2. The demand equation for a high end sports car is given by[50-рX = 10,(0 < p< 50)where z is quantity demanded per year and p is the unit price in hundreds of thousands of dollars.(a) Compute the elasticity of demand. Show all algebraic steps and simplify as much as possible.(b) Is the demand elastic, inelastic or unitary when the car is priced at $1,900,000?(c) At what price will the revenue be maximized?

(a). We know that elasticity of demand is, E =-dxdp×pxnow we have ,x=1050-ppnow differentiate with…

Answered: 2. The demand equation for a high end…

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2. The demand equation for a high end spörts car is giveln by 50-P X = 10, (0

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 1SCQ: From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand...

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Please do this problem step-by-step so I can make sure I did this problem right.

2. The demand equation for a high end sports car is given by
[50-р
X = 10,
(0 < p< 50)
where z is quantity demanded per year and p is the unit price in hundreds of thousands of dollars.
(a) Compute the elasticity of demand. Show all algebraic steps and simplify as much as possible.
(b) Is the demand elastic, inelastic or unitary when the car is priced at $1,900,000?
(c) At what price will the revenue be maximized?

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