7.2.4 Suppose the demand function for beer is given by q= 3p-1/4 %3D where p denotes price and q quantity supplied. Find the elasticity of demand. [The same method gives the elasticity of demand for any demand function of the form q = ap°, where a and b are positive real numbers. The result of part (ii) of the final part of Problem 6-4 is true in this more general case.]
7.2.4 Suppose the demand function for beer is given by q= 3p-1/4 %3D where p denotes price and q quantity supplied. Find the elasticity of demand. [The same method gives the elasticity of demand for any demand function of the form q = ap°, where a and b are positive real numbers. The result of part (ii) of the final part of Problem 6-4 is true in this more general case.]
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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The demand function given is a constant elasticity demand function. A constant elasticity demand function is of the form . It is also known as a log-linear demand curve.
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