Concept explainers
Elasticity of demand
a. In Section 3.4, we defined the elasticity of demand at price p as
Where f is a differentiable demand function x = f(p). Show that
b. The demand function of a product is
where p is the unit price in dollars and x is the quantity demanded, measured in units of a thousand. Use the result of part (a) to find the elasticity of demand.
Want to see the full answer?
Check out a sample textbook solutionChapter 5 Solutions
Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
- Decay of Litter Litter such as leaves falls to the forest floor, where the action of insects and bacteria initiates the decay process. Let A be the amount of litter present, in grams per square meter, as a function of time t in years. If the litter falls at a constant rate of L grams per square meter per year, and if it decays at a constant proportional rate of k per year, then the limiting value of A is R=L/k. For this exercise and the next, we suppose that at time t=0, the forest floor is clear of litter. a. If D is the difference between the limiting value and A, so that D=RA, then D is an exponential function of time. Find the initial value of D in terms of R. b. The yearly decay factor for D is ek. Find a formula for D in term of R and k. Reminder:(ab)c=abc. c. Explain why A=RRekt.arrow_forwardHollings Functional Response Curve The total number P of prey taken by a predator depends on the availability of prey. C.S. Holling proposed a function of the form P=cn(1+dn) to model the number of prey taken in certain situations. Here n is the density of prey available, and c and d are constants that depend on the organisms involved as well as on other environmental features. Holling took data gathered earlier by T. Burnett on the number of sawfly cocoons found by a small wasp parasite at given host density. In one such experiment conducted, Holling found the relationship p=21.96n1+2.41n, Where P is the number of cocoons parasitized and n is the density of cocoons available measured as number per square inch. a Draw a graph of p versus n. Include values of n up to 2 cocoons per square inch. b What density of cocoons will ensure that the wasp will find and parasitize 6 of them? c There is a limit to the number of cocoons that the wasp is able to parasitize no matter how readily available the prey may be. What is this upper limit?arrow_forwardGrazing Rabbits and Sheep This is a continuation of Exercise 21. In addition to the kangaroos, the major grazing mammals of Australia include merino sheep and rabbits. For sheep, the functional response is S=2.82.8e0.01V, and for rabbits, it is H=0.20.2e0.008V, Here S and H are the daily intake measured in pounds, and v is the vegetation biomass measured in pounds per acre. a. Find the satiation level for sheep and that for rabbits. b. One concern in the management of rangelands is whether the various species of grazing animals are forced to complete for food. It is thought that competition will not be a problem if the vegetation biomass level provides at least 90 of the satiation level for each species. What biomass level guarantees that competition between sheep and rabbits will not be problem?arrow_forward
- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:CengageFunctions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage Learning