John Delgado
11/26/2024 · High School
A company manufactures and sells \( x \) clocks per week with weekly price-demand function: \( f(p)=30-3 p \) where \( p \) is the price per clock. a. Compute the elasticity of demand function, \( E(p) \), for this demand function. \( E(p)= \) b. At \( p=3 \), a price increase of \( 2 \% \) will create a demand decrease of what percent? Round to 2 decimal places if necessary.
Upstudy ThothAI Solution
Tutor-Verified Answer
Quick Answer
a. The elasticity of demand function, \( E(p) \), is \( -\frac{p}{10-p} \).
b. A 2% price increase at \( p = 3 \) will lead to a demand decrease of approximately 0.86%.
Step-by-step Solution
Answered by UpStudy AI and reviewed by a Professional Tutor
UpStudy ThothAI
Self-Developed and Ever-Improving
Thoth AI product is constantly being upgraded and optimized.
Covers All Major Subjects
Capable of handling homework in math, chemistry, biology, physics, and more.
Instant and Accurate
Provides immediate and precise solutions and guidance.
Try Now
Ask Tutors
Ask AI
10x
Fastest way to Get Answers & Solutions
By text
Enter your question here…
By image
Re-Upload
Submit