Suppose the demand function for a product is given by 5,000 – q In p = q + 1 where p is in hundreds of dollars and g is the number of tons. (a) What is the elasticity of demand when the quantity demanded is 9 tons and the price is $155? (Round your answer to c 39.9 (b) Is the demand elastic or inelastic? O inelastic

Managerial Economics: A Problem Solving Approach
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Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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Suppose the demand function for a product is given by
=- In( 5,000 – q
9 + 1
1
4
where
is in hundreds of dollars and g is the number of tons.
(a) What is the elasticity of demand when the quantity demanded is 9 tons and the price is $155? (Round your answer to one decimal place.)
39.9
(b) Is the demand elastic or inelastic?
inelastic
elastic
Transcribed Image Text:Suppose the demand function for a product is given by =- In( 5,000 – q 9 + 1 1 4 where is in hundreds of dollars and g is the number of tons. (a) What is the elasticity of demand when the quantity demanded is 9 tons and the price is $155? (Round your answer to one decimal place.) 39.9 (b) Is the demand elastic or inelastic? inelastic elastic
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