Question 1.5 The demand curve for a good is Q = 500 − 4p 2 . What is the elasticity at the point p = 5 and Q = 400? Is the demand curve elastic or inelastic at this point? (Hint dQ/dp = −8p, which evaluates to dQ/dp = −8 × 5 = −40 at p = 5).

Microeconomics
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ISBN:9781337617406
Author:Roger A. Arnold
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Chapter6: Elasticity
Section: Chapter Questions
Problem 3WNG: The quantity demanded of good X rises from 130 to 145units as income rises from 2,000 to 2,500 a...
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Question 1.5 The demand curve for a good is Q = 500 − 4p 2 . What is the elasticity at the point p = 5 and Q = 400? Is the demand curve elastic or inelastic at this point? (Hint dQ/dp = −8p, which evaluates to dQ/dp = −8 × 5 = −40 at p = 5).
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