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3 years ago

12

The consumer demand equation for tissues is given by q = (94 − p)2, where p is the price per case of tissues and q is the demand

in weekly sales. (a) Determine the price elasticity of demand E when the price is set at $28.

1 answer:

oee [108]3 years ago

8 0

Answer:

E=0.848

Explanation:

Given that

q= (94-p)²

where p is the price per case of tissues and q is the demand in weekly sales

As we know that price elasticity of demand given as

$E=-\dfrac{dq}{dp}.\dfrac{p}{q}$

q= (94-p)²

$\dfrac{dq}{dp}=- 2 (94-p)$

$E=2 (94-p)\dfrac{p}{(94-p)^2}.$

When p = $28

$E=2 \dfrac{p}{(94-p)}.$

$E=2\times \dfrac{28}{(94-28)}.$

E=0.848

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