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Math Help - Demand function and finding elasticity

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    Demand function and finding elasticity

    I wasn't sure whether this should go in the Calculus or Business sections(it's a calculus class but a business themed problem) my apologies if it is in the wrong section.


    For the demand function q = 800 - 2p^2 find the elasticity when p = $12 and q is the number of items produced.
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  2. #2
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    Quote Originally Posted by Mathamateur View Post
    I wasn't sure whether this should go in the Calculus or Business sections(it's a calculus class but a business themed problem) my apologies if it is in the wrong section.


    For the demand function q = 800 - 2p^2 find the elasticity when p = $12 and q is the number of items produced.
    Now the definition of elacticity that I have here is:

    E=(\%\mbox{ age change in demand})/(\%\mbox{ age change in price)}=\frac{dq}{dp}\ \frac{p}{q}.

    Now:

    \frac{dq}{dp}=-4p,

    so:

    <br />
E=-4p\ \frac{p}{800-2p^2}<br />

    So if p=12, the:

    <br />
E=-4 \times 12\ \frac{12}{800-288}=-1.125<br />

    RonL
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