Business Math

3.) The demand equation for a certain product is

q=500-40p+p^2

where p is the price per unit (in dollars) and q is the quantity of units demanded (in thousands). Find the point elasticity of demand when p = 15. If this price of 15 is increased by ½%, what is the approximate change in demand?

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  1. where p is the price per unit (in dollars) and q is the quantity of units demanded (in thousands). Find the point elasticity of demand when p = 15. If this price of 15 is increased by 1/2%, what is the approximate change in demand?

    I don't know why it put an A there... sorry.

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  2. So if I plug 15 into p. I get q(demand) = 125

    Half of 15 is 7.5. Thus the price would be 22.5.. I think.

    I replace p with 22.5 and I get q= 106.25

    Q/P =8.33 for 15

    Q/P = 4.722 for 22.5

    Is the change in demand 3.608?

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