Suppose that the demand function for a product is given by the equation: pq + 16p + 104g = 51690 where p represents the price in dollars per unit and q represents quantity demand in units. a. Implicitly derive the equation above to find the instantaneous rate of change of quantity with respect to price. REMEMBER THE PRODUCT RULE! dq dp b. Write the formulation for price elasticity of demand, n, based on your answer above as a function of p and q. n = c. Evaluate the price elasticity of demand when p = $155 and q = 190. Round your answer to the fourth decimal place. N$155,190 = d. What type of demand do you have in this market? O inelastic O elastic
Suppose that the demand function for a product is given by the equation: pq + 16p + 104g = 51690 where p represents the price in dollars per unit and q represents quantity demand in units. a. Implicitly derive the equation above to find the instantaneous rate of change of quantity with respect to price. REMEMBER THE PRODUCT RULE! dq dp b. Write the formulation for price elasticity of demand, n, based on your answer above as a function of p and q. n = c. Evaluate the price elasticity of demand when p = $155 and q = 190. Round your answer to the fourth decimal place. N$155,190 = d. What type of demand do you have in this market? O inelastic O elastic
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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