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
I ALWAYS GIVE OUT BEST ANSWER POINTS!! NO VOTING!
- HelmutLv 71 decade agoFavorite 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.