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.

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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%.

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