9) Use the price-demand equation to determine whether demand is elastic, is inelastic, or has unit elasticity at the indicated values of p. (Sect. 3.7 #47 page 234) x=f(p)=12,000- 10p² a) p=10 b) p=20 c) p=30

9) Use the price-demand equation to determine whether demand is elastic, is inelastic, or has unit elasticity at the indicated values of p. (Sect. 3.7 #47 page 234) x=f(p)=12,000- 10p² a) p=10 b) p=20 c) p=30

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...

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9) Use the price-demand equation to determine whether demand is elastic, is inelastic, or
has unit elasticity at the indicated values of p. (Sect. 3.7#47 page 234)
x=f(p)=12,000- 10p²
a) p=10
b) p=20
c) p=30

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Step 1: Define price elasticity of demand.

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Step 2: a) Calculate the price elasticity of the demand function when price is 10.

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Step 3: b) Calculate the price elasticity of the demand function when price is 20.

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Step 4: c) Calculate the price elasticity of the demand function when price is 30.

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