For the following demand equation compute the elasticity of demand and determine whether the demand is elastic, unitary, or inelastic at the indicated price. p = 141 − x2; p = 94 E(94)=?

Sol:-

To compute the elasticity of demand at a price of p = 94, we first need to find the corresponding quantity demanded. We can do this by substituting p = 94 into the demand equation and solving for x:

p = 141 − x² 94 = 141 - x² x² = 141 - 94 x² = 47 x = √47 x ≈ 6.86

So when the price is 94, the quantity demanded is approximately 6.86.

Next, we can compute the elasticity of demand using the formula:

E = (ΔQ / Q) / (ΔP / P)