Find the elasticity of demand E for the given demand functio

Find the elasticity of demand (E) for the given demand function at the indicated values of p. Is the demand elastic, inelastic, or neither at the indicated values? q = 406-0.2p2 $25 $36 E = (Type an integer or decimal rounded to the nearest thousandth as needed.) The demand is . E= (Type an integer or decimal rounded to the nearest thousandth as needed.) The demand is .

Solution

The derivative: E = -0.4p If p = 25, then E = -10 < 1 so the demand is elastic. If p = 36, then E = -14.4 < 1 so the demand is elastic.