Question

suppose the demand for the IBM personal computer is:
Qd = 2400 − 4p
(a) At what price is the price elasticity of demand equal to zero?
(b) When the price elasticity of demand equal to 1, what’s the quantity being demand
at that point?
(c) Figure out at what price, the price elasticity of demand is infinite, and explain
what does infinite price elasticity of demand mean?
(d) What’s the change of revenue generated by sale when the price elasticity of demand falls from infinite to 1.

Answer 1

d is the correct answer

Answer 2

Think the need for the IBM own computer is:

Qd = 2400 − 4p, the right answer option will be as follows.

We remember that the demand capacity is Q = 2400 - 4P and this can be rearranged to rise: P=(−14)Q+600 ...

On that case, What’s the change in revenue generated by sale when the price elasticity of demand falls from infinite to 1 is the right answer, so option D) is the right answer.