Asked by Margot Rochester on Apr 24, 2024
Verified
the demand function for drangles is given by D(p) (p 1) 2.If the price of drangles is $3, then the price elasticity of demand is
A) 0.75.
B) 3.
C) 4.50.
D) 6.
E) 1.50.
Price Elasticity
A metric assessing the reaction of the amount of a good demanded to its price alterations.
Demand Function
An equation that describes the relationship between the quantity of a product demanded and the product’s price.
- Attain insight into demand functions and the approach to decipher them.
- Measure the price elasticity of demand for various merchandise and acknowledge its importance.
Verified Answer
CC
Caroline CapaprisMay 02, 2024
Final Answer :
E
Explanation :
The formula for price elasticity of demand is given by the percentage change in quantity demanded divided by the percentage change in price. Without the specific demand function provided in a readable format, the correct answer cannot be determined through calculation here. However, given the choices, if one understands the concept of price elasticity, they can infer that the answer provided (E) suggests a specific numerical value for the elasticity at a price of $3, which would be a result of applying the elasticity formula to the given demand function.
Learning Objectives
- Attain insight into demand functions and the approach to decipher them.
- Measure the price elasticity of demand for various merchandise and acknowledge its importance.