+2 votes
in General by kratos

For the demand function x = $25/"p"^4$, 1 p 5, determine the elasticity of demand.

1 Answer

+3 votes
by kratos
 
Best answer

The demand function, x = $25/"p"^4$, 1 p 5

The elasticity demand, d= $- "p"/x * "dx"/"dp"$

x = $25/"p"^4$

x = 25 p-4

$"dx"/"dp" = (25)(-4)"p"^(-4-1)$

$= 25 xx -4 xx "p"^(-5)$

$= 25 xx (-4)xx1/"p"^5$

Hint for differentiation

$"d"/"dx"(1/"x"^"n") = "-n"/("x"^("n + 1"))$

x = $25/"p"^4$

$"dx"/"dp" = 25((-4)/"p"^5)$

d= $- "p"/x * "dx"/"dp"$

$= (-"p")/(25/"p"^4) xx 25 xx (-4)xx1/"p"^5$

$= (-"p"^5)/25 xx 25 xx (-4) xx 1/"p"^5$ = 4

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