Suppose that your demand curve for X is given by the equation X = c dP

Question:

Suppose that your demand curve for X is given by the equation

X = c − dP

where P is price and c and d are positive constants.

a. Derive a formula for your price elasticity of demand for X, and write your formula in terms of X alone.

b. When you consume zero units of X, what is your price elasticity of demand? When the price of X is zero, what is your price elasticity of demand?

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Price theory and applications

ISBN: 978-0538746458

8th edition

Authors: Steven E landsburg

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Question Posted: Jan 24, 2013 08:14 AM

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Suppose that your demand curve for X is given by the equation X = c dP

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We are given X C dP A Now differentiating wrt P we get dXdP d Derivi...View the full answer

Price theory and applications

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