HELP ON THIS PLS MATH
2 answers:
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Answer:
the estimate the percent change in q when the price is raised from $2.00 to $2.10 decreases by 25%
Step-by-step explanation:
Given that:
the number of units demanded
Taking differentiations ; we have,
Now; the price elasticity of demand using the differentials definition of elasticity is:
(b) Use your answer from part (a) to estimate the percent change in q when the price is raised from $2.00 to $2.10.
The estimate of the percentage change in price is :
= 5%
From (a)
Now at p = $2.00
E(2) = 1 - 3 (2.00)
E(2) = 1 - 6
E(2) = -5
The percentage change in q = -5 × 5%
The percentage change in q = -25%
Thus; we can conclude that the estimate the percent change in q when the price is raised from $2.00 to $2.10 decreases by 25%