The demand function of a good is given by Q = 1000/P 2 (a) Calculate the price

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The demand function of a good is given by
Q = 1000/P²

(a) Calculate the price elasticity of demand at P = 5 and hence estimate the percentage change in demand when P increases by 2%.

(b) Comment on the accuracy of your estimate in part (a) by calculating the exact percentage change in demand when P increases from 5 to 5.1.

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Mathematics for Economics and Business

ISBN: 978-1292191669

9th edition

Authors: Ian Jacques

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Question Posted: Apr 18, 2019 09:27 AM

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The demand function of a good is given by Q = 1000/P 2 (a) Calculate the price

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a dQ 2000 dP p do At P 5 Q 40 and 16 dp 5 ...View the full answer

Mathematics for Economics and Business

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