Homework SourseThe demand function for a certain make of inkjet cartridge i
The demand function for a certain make of ink-jet cartridge is the following where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand.
p= -0.02x^2-0.2x+6
Compute the elasticity of demand when x = 8. (Round your answer to two decimal places.)
p= -0.02x^2-0.2x+6
Compute the elasticity of demand when x = 8. (Round your answer to two decimal places.)
Solution
(Price) elasticity of demand: (SInce here the price function is given) e = (dx/x)/(dP/P) = P/(x*dP/dx) At x=8, P = 3.12 dP/dx = -0.04x - 0.2 = -0.52 So we have e = 3.12/(8*-0.52) = -0.75 Hope you like it :)
