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28 May 2018
Question 3. (20 marks) The demand for electric cars is given by D(p) = 400p-1.5. (a) Find the elasticity of demand in the "usual way" (b) Find the elasticity of demand using logarithmic differentiation. (c) Evaluate this elasticity at p= 1. (d) Suppose a monopolist faces a revenue curve given by R(P) = px D(p). Find the elasticity of revenue.
Question 3. (20 marks) The demand for electric cars is given by D(p) = 400p-1.5. (a) Find the elasticity of demand in the "usual way" (b) Find the elasticity of demand using logarithmic differentiation. (c) Evaluate this elasticity at p= 1. (d) Suppose a monopolist faces a revenue curve given by R(P) = px D(p). Find the elasticity of revenue.
Lelia LubowitzLv2
29 May 2018