True or false?
The demand is of unit elasticity at the indicated price p.
D(p) = −1.5p + 7; p = 3
I marked true and it was incorrect. Where did I go wrong?
Here is what I did:
I believe thats the correct setup for elasticity. The absolute value is 1.8 which is > 1. So shouldn't it be elastic?
BTW: The formula that was given for elasticity is