Anonymous
Anonymous asked in Science & MathematicsMathematics · 1 decade ago

Find the elasticity pf demand E(p). D(p)= 500/p p=2 CALCULUS!! Please help! THANKS!?

Find the elacticity pf demand E(p).

Determine whether the demand is elastic, inelastic, or unitary elastic at the given price P.

D(p)= 500/p p=2

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  • Helmut
    Lv 7
    1 decade ago
    Best Answer

    "(In determining elasticity, absolute values govern--negative and positive signs may be omitted.)"

    E = p/D(dD/dp)

    dD/dp = -500/p^2

    D(2) = 250

    dD/dp@2 = -125

    E(2) = 2(125)/250 = 1

    At the given price the demand is unitary elastic.

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