Asked by Amanda Jones on Jun 04, 2024
Verified
the demand function for drangles is given by D(p) (p 1) 2.If the price of drangles is $20, then the price elasticity of demand is
A) 0.95.
B) 7.62.
C) 5.71.
D) 3.81.
E) 1.90.
Price Elasticity
A measure of the sensitivity of the quantity demanded or supplied of a good to a change in its price.
Demand Function
A mathematical relationship that represents the quantity of a good or service consumers are willing to purchase at various prices.
- Engage with the topic of demand functions and the mechanics of their interpretation.
- Calculate the responsiveness of demand to price changes among various products and interpret its implications.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
E
Explanation :
The formula for price elasticity of demand is not clearly provided due to the formatting issues in the question. However, the correct answer typically involves calculating the percentage change in quantity demanded over the percentage change in price. Given the options and the common approach to calculating elasticity, option E seems to be a plausible value for price elasticity of demand at a price of $20, assuming it corresponds to a calculation that fits the general behavior of demand elasticity. Without the specific formula or demand function provided in a readable format, a precise calculation cannot be performed, but option E suggests a reasonable elasticity value that could be expected in many demand scenarios.
Learning Objectives
- Engage with the topic of demand functions and the mechanics of their interpretation.
- Calculate the responsiveness of demand to price changes among various products and interpret its implications.