Elasticity of Demand

3 Activities

The demand for Tit-Tat chocolate bars at price p is f(p)=20−1.5pf(p)=20-1.5pf(p)=20−1.5p

a) Write a formula for the elasticity of demand at price p
b) compute the elasticity of demand at price p=1p=1p=1 and  p=8p=8p=8 . 

a) 1.5p20−1.5p\frac{1.5p}{20-1.5p}20−1.5p1.5p​
b) E(1)=0.81E\left(1\right)=0.81E(1)=0.81 (elastic); E(8)=1.5E\left(8\right)=1.5E(8)=1.5 (inelastic)

a) 1.5p20−1.5p\frac{1.5p}{20-1.5p}20−1.5p1.5p​
b) E(1)=0.81E\left(1\right)=0.81E(1)=0.81 (inelastic); E(8)=1.5E\left(8\right)=1.5E(8)=1.5 (elastic)

a) 1.520−1.5p\frac{1.5}{20-1.5p}20−1.5p1.5​
b) E(1)=0.81E\left(1\right)=0.81E(1)=0.81 (inelastic); E(8)=0.19E\left(8\right)=0.19E(8)=0.19 (inelastic)

a) 1.520−1.5p\frac{1.5}{20-1.5p}20−1.5p1.5​
b) E(1)=0.81E\left(1\right)=0.81E(1)=0.81 (elastic); E(8)=0.19E\left(8\right)=0.19E(8)=0.19 (elastic)

None of the above

I don't know

Elasticity of Demand

Assume the relationship between the price (ppp) and the number sold (qqq) is p2+q2=98p^2+q^2=98p2+q2=98 
For what value of ppp, is the revenue maximized?

Elasticity of Demand

Assume that the price ppp and the demand qqq of a certain good are related by the equation
q=2e1−p+4p+1q = 2e^{1- p} + \frac{4}{p + 1}q=2e1−p+p+14​
a) Find the price elasticity ε(p)\varepsilon(p)ε(p) as a function of ppp .

Elasticity of Demand

The price and quantity of certain commodity are related by the following expression:
2p2+3q2=3602p^2 + 3q^2 = 3602p2+3q2=360

Elasticity of Demand

Assume the relationship between the price of pizza (ppp) and the number of them sold (qqq) is p2+q2=98p^2+q^2=98p2+q2=98 
For what value of ppp, is the revenue maximized?

Elasticity of Demand

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