Question

If demand function is given by D=15-4p-p^2 then price elasticity at demand when p=2​

Answer 1

Answer:

D=3..

Step-by-step explanation:

D=15-4p-p^2

= 15-8-4

= 15-12

= 3...

Answer 2

The demand function, D = 3 and the price elasticity at demand is elastic in nature.

Given: If demand function is given by D = 15 - 4p - p².

To find: Find the price elasticity at demand when p = 2.

Solution:

We are given, D = 15 - 4p - p² and p = 2

⇒ D = 15 – 4(2) – 2²

⇒ D = 15 – 8 – 4

⇒ D = 15 – 12

⇒ D = 3

Since, the demand function, D = 3.

Therefore,

The price elasticity at demand is elastic in nature.

Additional Information:

• Price elasticity of demand is “the ratio of the percentage change in quantity demanded of a product or service to the percentage change in price of that product or service”.
• If price elasticity is greater than 1, then the nature of the good is elastic.
• If the price elasticity is less than 1, then it is inelastic in nature.
• If the price elasticity is equal to 0, then it is said to be perfectly inelastic.

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