Evaluating elasticity

posted by .

The demand function for a certain item is x = 35(sqrt(32-p^2))
---Evaluate the elasticity at 5. E(5)=
I don't know how to find elasticity, so i don't know how to start this problem. If someone could explain elasticity i think that i could figure it out.

  • Evaluating elasticity -

    Elasticity = - ddemand/dprice * P/q ?

    so here
    elasticity= - dx/dp * p/x

    I assume you can take the derivative, put p=5 (and x(5)) and compute E.

  • Evaluating elasticity -

    dx/dp = 35*(1/2)*(-2p)/sqrt(32-p^2)
    = -35/sqrt(32-p^2)

    Now evaluate E(x) = -(p/x)* (dx/dp)
    @ p=5
    x(5) = 35 sqrt 5
    and put it all together.

    A few numbers will cancel, simplifying the result.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economic Theory

    What is the price elasticity of supply for your chosen industry?
  2. Economics

    How is elasticity of supply related to elasticity of demand?
  3. managerial economics

    Explain the relationship between product X, product Y and product Z or the properties of each according to the following statements a. Cross price elasticity between X and Y is -4 b. Cross price elasticity between X and Y is 12 c. …
  4. managerial economics

    4. The equation for a demand curve has been estimated to be Q = 100 – 10P + 0.5Y where Q is quantity, P is price, and Y is income. Assume that P = 7 and Y = 50. a. Interpret the equation. b. What is price elasticity at P = 7 and …
  5. MircoEcon

    Agree or disagree with this statements and explain: If the demand for a good has unitary elasticity, or elasticity is -1, it is always true that an increase in its price will lead to more revenues for sellers taken as a whole.
  6. Managerial Economic

    Mr. Smith has the following demand equation for a certain product: Q = 30 - 2P. a. At price of $7, what is point elasticity?
  7. Elasticity Demand Calculus

    Find the elasticity of the demand function: pq = 42 p=$2 My professor went through this lesson really fast and I would appreciate anyone's help in explaining it. Thank You
  8. Economics

    1.calculate the price elasticity of demand when the price was increased from R25 to R40 ?
  9. Calculus

    Equation: Suppose that the demand of a certain item is x = -0.7 p + 20. Evaluate the elasticity at E = 8. I'm not sure what steps to take to solve this. I know that elasticity is equal to the absolute value of [(p/q) x (dp/dq)]
  10. calculus

    Elasticity a) Find the elasticity of the demand function q + 2p = 5000 when p = $1000, and q = 3000. b) How would revenue be affected by a price increase?

More Similar Questions