Question

price elasticity of demand for a commodity is P/x3 (where 'p' is price and 'x' is output) the demand function, if the demand is 3 when the price is 2, will be given as?​

Answer 1

Explanation:

a, x=200−4p

η=

∂p

∂x

×

x

0

p

0

=−4×

200−4p

p

b, η=−4×

200−40

10

=

160

−40

=

4

1

η<1, goods price inelastic.