Question 1. The demand equation for a certain brand of metal alloy audio cassette tape is: 100 x^2 + 9 p^2 = 3600, where x represents the number (in thousands) of ten-packs demanded each week when the unit price is $p. How fast is the quantity demanded increasing when the unit price per ten-pack is $14 and the selling price is dropping at the rate of 15 cents per ten-packs/week? [Hint: To find the value of x when p = 14, solve the equation 100 x^2 + 9 p^2 = 3600 for x when p = 14].

Question 2a. Suppose the quantity x of Super Titan radial tires made available each week in the marketplace is related to the unit-selling price by the equation: p - (x^2 / 2) = 48, where x is measured in units a thousand and p is in dollars. How fast is the weekly supply of Super Titan radial tires being introduced into the marketplace when x = 6, p = 66, and the price/tire is decreasing at the rate of $3/week?

Question 2b. The demand function for a certain brand of compact disc is given by the equation: p = - 0.01 x^2 - 0.2 x + 8, where p is the unit price in dollars and x is the quantity demanded each week measured in units of a thousand. Compute the elasticity of demand E(p), and determine whether demand is elastic, inelastic or unitary when x = 15.

Solution Summary

This solution determines whether demand is elastic, inelastic or unitary.

... The price elasticity of demand is elastic when the percent change in quantity demanded is greater than ... The elasticity of demand is unitary when the percent ...

... Elasticity of demand shows the responsiveness of the quantity ... The price elasticity is termed 'elastic' when the ... the percent change in quantity demanded is less ...

... When it is 0, it is considered perfectly inelastic. ... will bring about proportionate change in quantity demanded and is called unitary elastic demand. ...

... 1% change in price at this level results in more than 1% decrease in the quantity demanded and hence the price elasticity of demand is elastic. ...

...demand, while values higher than one indicate elastic demand. ... Necessities have inelastic demands, which means that the quantity demanded does not respond ...

... Define elastic, inelastic, and unitary elasticity means ... Price elasticity of demand is a measure of the percentage ... in the quantity of a good demanded divided by ...

... change in price The change in quantity demanded is 2, and average demand is 198 ... whether the elasticity that you calculated is elastic, inelastic or unitary...

...Inelastic? Unitary Elastic? Explain your answer. Please see the attached files. Calculate total revenue at each and every price for this demand curve. ...

... from 75 to 60, demand is highly elastic, and consumers ... point of demand is high on the demand curve, and the percentage change in quantity demanded is much ...