compute the elasticity of demand

Calculus
Tutor: None Selected Time limit: 1 Day

Jul 8th, 2015

Thank you for the opportunity to help you with your question!

dx/dp=-7/4

E(p)=(dx/dp)*(p/x)

       =(-7/4)*(p/(-7/4)p+18)

put p=10

E(10)=-35

As -35 is greater thab -1 and less than 0 ..so it is inelastic when p=10.

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 8th, 2015

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