Question

The demand function for a certain make of exercise bicycle sold exclusively through cable television is p=9−0.02x−−−−−−−−√(0≤x≤450) where p is the unit price in hundreds of dollars and x is the quantity demanded per week. Compute the elasticity of demand and determine the range of prices corresponding to inelastic, unitary, and elastic demand. Hint: Solve the equation E(p)=1.

Answer 1

Answer:

Step-by-step explanation:

• The concept of demand is applied, demand may be elastic, inelastic and unitary as the detailed steps and calculations is as shown in the attached file.
• For elastic demand, P > 1
• For inelastic demand, P < 1
• For unitary, P = 1