3.) The demand equation for a certain product is

q=500-40p+p^2

here 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?

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?

1. 👍 0
2. 👎 0
3. 👁 216

## Similar Questions

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

asked by pypski on December 14, 2016
2. ### managerial economics

Exercise 1 The marketing manager has estimated the company’s demand curve with the equation P=3000 – 40Q. To develop a deeper understanding of pricing and quantity to be produced, complete the following analyses: 1. Draw the

asked by Butter on February 20, 2012
3. ### economics

Assume that demand for product A can be expressed as QA = 500 ¨C 5PA + 3PB and demand for product B can be expressed as QB = 300 ¨C 2PB + PA. Currently, market prices and quantities for these goods are PA, = 5, PB = 2, QA = 481,

asked by Imran on November 2, 2012
4. ### Math - Limits/Derivatives

If a price-demand equation is solved for p, then price is expressed as p = g(x) and x becomes the independent variable. In this case, it can be shown that the elasticity of demand is given by E(x) = - [g(x) / xg'(x)]. Use the

asked by Jess on October 19, 2013
5. ### Math

In economics, the demand for a product is the amount of that product that consumers are willing to buy at a given price. The quantity demanded of a product usually decreases if the price of that product increases. Suppose that a

asked by George Carl on February 26, 2018
6. ### ecomonics

I am trying to understand the math part of supply and demand . I am not getting it,I really need help! The question is: The demand and supply functions for sweatshirts are as follows: DEMAND Supply Quanity Quanity demanded(per

asked by elizabeth on November 5, 2008
7. ### Algebra

The price p and x the quantity of a certain product sold obeys and the demand equation p= -1/5x+100 where 0< x

asked by Anonymous on April 8, 2019
8. ### Economics

There are two types of consumers of potatoes: 10 are rich and 50 are poor. Every rich consumer has a demand of 0 for a price of \$500/ton; and his/her demand decreases by 1 ton each time the price increases by \$1/ton. Every poor

asked by Joe on October 2, 2012
9. ### Finite Math

At a price of \$ 1.94 per bushel, the supply corn in 9,800 million bushel and the demand is 9, 300 million bushel. At a price of \$1.82 per bushel, the supply is 9,400 million bushels and the demand is 9, 500 million bushels. A,

asked by daylo3 on January 23, 2011
10. ### Math

The demand equation for a product is: q=60/p + ln(65-p^3) A) Determine the point of elasticity of demand when p=4, and classify the demand as elastic, inelastic, or of unit elasticity at this price level. B) If the price is

asked by pebbles on January 9, 2017

More Similar Questions