Question

Suppose that the demand of a certain item is x=100e−0.02px=100e−0.02p. Evaluate the elasticity at 40: E(40)E(40)...

Suppose that the demand of a certain item is x=100e−0.02px=100e−0.02p.
Evaluate the elasticity at 40:

E(40)E(40) =

Math   Calculus   
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Answer #1

The question you have given has two times same equation. If the equation is two times then the given question is wrong. So i took one equation and did elasticity of demand.

At the price of 40 we got elasticity of demand is negative. If elasticity is negative then it is relatively inelastic.

If you have any doubts please feel free to ask in comments.

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