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Math Help - Elasticity of Demand

  1. #1
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    Elasticity of Demand

    The demand equation for a certain product is given by p = 10e^(-0.001q)
    where p is the price in dollars and q is the quantity in units.


    a) Find the elasticity of demand when 200 units are produced.

    b) Interpret your result form part a) by analyzing the revenue when the unit price is decreased.
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  2. #2
    Super Member ILikeSerena's Avatar
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    Re: Elasticity of Demand

    Quote Originally Posted by hellokitty999 View Post
    The demand equation for a certain product is given by p = 10e^(-0.001q)
    where p is the price in dollars and q is the quantity in units.


    a) Find the elasticity of demand when 200 units are produced.

    b) Interpret your result form part a) by analyzing the revenue when the unit price is decreased.
    Hi hellokitty999!

    Elasticity of demand is \frac{P}{Q_d} \times \frac{1}{\frac{dP}{dQ_d}}.

    Can you calculate that?
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  3. #3
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    Re: Elasticity of Demand

    I have no idea can you show me steps please ?!
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  4. #4
    Super Member ILikeSerena's Avatar
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    Re: Elasticity of Demand

    Quote Originally Posted by hellokitty999 View Post
    I have no idea can you show me steps please ?!
    It's no fun for me to just give you a complete answer.
    But if you try some steps I'll help you along.

    For starters, what is the price for a demand quantity of 200 units?
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  5. #5
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    Re: Elasticity of Demand

    Do I just put 200 in place of q
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  6. #6
    Super Member ILikeSerena's Avatar
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    Re: Elasticity of Demand

    Yep!
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  7. #7
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    Re: Elasticity of Demand

    Ok and from there
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  8. #8
    Super Member ILikeSerena's Avatar
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    Re: Elasticity of Demand

    Well... what it the price for a demand of 200?
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  9. #9
    Super Member ILikeSerena's Avatar
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    Re: Elasticity of Demand

    Ah well.
    If you don't want to learn and don't want to try, that's up to you.
    Perhaps someone else will pick up this thread and give a complete solution.
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