Use calculus to prove that the elasticity of demand is a constant everywhere along the demand

Question:

Use calculus to prove that the elasticity of demand is a constant ε everywhere along the demand curve whose demand function is Q = Ap^ε .

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

See More Books

Question Posted: Nov 12, 2018 06:12 AM

See More Questions

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 In...
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 In...
1. Assume that the elasticity of demand for chewing tobacco is 0.70 and the elasticity of supply is 2.30. Suppose an antic hewing campaign decreases the demand for chewing tobacco by 18 percent. The...
The distance between the K+ and Cl ions in KCl is 2.80 1010 m. Calculate the energy required to separate the two ions to an infinite distance apart, assuming them to be point charges initially at...
When a ceiling fan rotating with an angular speed of 3.66 rad/s is turned off, a frictional torque of 0.125 N # m slows it to a stop in 31.8 s. What is the moment of inertia of the fan?
What are the basic types of taxation in Canada?
Uniform flow in a sluggish channel having a nearly rectangular cross section that is $498 \mathrm{ft}$ wide and $16.5 \mathrm{ft}$ deep carries a flow of $8,250 \mathrm{ft}^{3} / \mathrm{s}$....
Looney Inc. was organized on July 1, Year 1. A summary of cash flows for July follows. Cash receipts: Cash received from customers ...........$600,000 Cash received from sale of capital stock ..........
An investor bought stock for $40,000. Fifteen years later, the stock was sold for $60,000. If interest is compounded continuously, what annual nominal rate of interest did the original $40,000...
A total of 7000 stampings must be produced in the press department during the next three days. Manually operated presses will be used to complete the job and the cycle time is 27 sec. Each press must...
In early 2010, the U.S. government offered an $8,000 subsidy to new homebuyers. What effect does a per-house subsidy have on the equilibrium price and quantity of the housing market? What is the...
Duffy-Deno (2003) estimated that the demand function for broadband service was Q s = 15.6p -0.563 for small firms and Q l = 16.0p -0.296 for larger ones. These two demand functions cross. What can...
Consider the simple linear regression model fit to the tank pressure and volume data in Problem 2.16. Problem 2.16 Carroll and Spiegelman ("The Effects of Ignoring Small Measurement Errors in...
If you go on a motorcycle trip of 200 miles in the mountains and 8/19 of the trip is uphill, how many miles of the trip are not uphill? Reduce to the lowest terms
Figure 1, shows an RC continuous beam supporting various loads and actions. The loading condition and dimension data are given in Figure 1 and as a function of UC (uniqueness code). Your Uniqueness...
Let us revisit the portfolio problem in Topic 2 (and in the problem above), but now let us take into account your human capital. As before, you can invest your wealth into either the riskless asset...
Your clients, Adam and Donna Smith, met with you a week ago because they were seeking some advice regarding how to invest a sum of money that is maturing from a GIC in two weeks. At that time you...
Lisa owns and operates Athlete Success Limited, a closely held personal service corporation in which she provides training advice to professional athletes. Athlete Success Limited has $60,000 of...
It is often said that consumers receive free content online. Is this the case? Why or why not?
In Problems 718, write the augmented matrix of the given system of equations. f0.01x0.03y = 0.06 [0.13x + 0.10y = 0.20
The production function for the automotive and parts industry is q = L0.27 K0.16 M0.61, where M is energy and materials (based on Klein, 2003). What kind of returns to scale does this production...
Does it follow that because we observe that the aver-age product of labor is higher for Firm 1 than for Firm 2, Firm 1 is more productive in the sense that it can produce more output from a given...
A production function has the property that f( xL, xK) = x2f( L, K) for any positive value of x. What kind of returns to scale does this production function exhibit? If the firm doubles L and K, show...
You are working in a clinic and have just roomed a patient. When you come out of the room, you overhear me complaining to two co-workers about you and how slow you are. [Take the role of the other...
What are the advantages and pitfalls of the media's appetite for telling and selling stories? As we reach the point where almost all media exist on the Internet in some form, how have our culture and...
When looking at a project to convert data into information, data analysis is the methodology thatshould be used to accomplish the output. When reviewing the tools used in the course and the data that...

Use calculus to prove that the elasticity of demand is a constant everywhere along the demand

Question:

Step by Step Answer:

Differentiating the demand function as Q Ap with respect to ...View the full answer

Microeconomics

Students also viewed these Business questions