This Function is: PY = $300       PL = $1.50       I = $40000            A = $200000                        QX = 197000 -100PX +50P­Y +.025I +.02A + 10000PL   Calculate the point price elasticity of demand at PX = $250 (which should make QX = 207000).  Does this elasticity value indicate that the demand for Brand X washing machines is relatively responsive to changes in the price of these machines?  Explain why or why not.  The formula is:   Ep = deritiveQx / deritive Px * Px / Qx

Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter2: Functions
Section2.4: Average Rate Of Change Of A Function
Problem 4.2E: bThe average rate of change of the linear function f(x)=3x+5 between any two points is ________.
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This Function is:

PY = $300       PL = $1.50       I = $40000            A = $200000                       

QX = 197000 -100PX +50P­Y +.025I +.02A + 10000PL

 

Calculate the point price elasticity of demand at PX = $250 (which should make QX = 207000).  Does this elasticity value indicate that the demand for Brand X washing machines is relatively responsive to changes in the price of these machines?  Explain why or why not.  The formula is:

 

Ep = deritiveQx / deritive Px * Px / Qx

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