3. Given the demand function P= 100e0.1Q. Find: a) The level of output for which the price elasticity of the demand is unit elastic. b) The percentage change of price due to 8% increase of the demand, where the current level of output is 10.

3. Given the demand function P= 100e0.1Q. Find: a) The level of output for which the price elasticity of the demand is unit elastic. b) The percentage change of price due to 8% increase of the demand, where the current level of output is 10.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 6E

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Question

Given the demand function P= 100e 0.1Q. Find:
a) The level of output for which the price elasticity of
the demand is unit elastic.
b) The percentage change of price due to 8% increase
of the demand, where the current level of output is 10.

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