Suppose the demand function for smart phones is given by Q(P) where A> 0 and 1-a a > 1. Use calculus to show that the price elasticity is equal to 1- - a everywhere along the whole curve. (Hint: Recall that if f(x) = x³, then f'(x) = ßxß-¹). Interpret this result. =

Suppose the demand function for smart phones is given by Q(P) where A> 0 and 1-a a > 1. Use calculus to show that the price elasticity is equal to 1- - a everywhere along the whole curve. (Hint: Recall that if f(x) = x³, then f'(x) = ßxß-¹). Interpret this result. =

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 6QP: Suppose a straight-line downward-sloping demand curve shifts rightward. Is the price elasticity of...

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Question

Suppose the demand function for smart phones is given by Q(P) =
AP¹-a
1-a
where A> 0 and
a > 1. Use calculus to show that the price elasticity is equal to 1 — a everywhere along the
whole curve. (Hint: Recall that if f(x) = x³, then ƒ'(x) = ßxß-¹). Interpret this result.

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