Question

Find a positively sloped curve with a constant point elasticity everywhere on the curve. Write the
equation of the curve and verify using formula Eyx = (marginal
function / average function) that the
elasticity is a constant.​

Answer 1

Answer:

The price elasticity of demand measures the sensitivity of quantity demanded to price: it tells us the percentage change in quantity demanded when price changes by 1%. In this Leibniz, we define the elasticity using calculus, and show how the pricing decisions of a firm depend on the elasticity of the demand that it faces.