Mathematics 1 Deneme Sınavı Sorusu #1207353

If the demand function of a particular commodity is given by p(q)=350-(q/5) what is the price when the demand is of unit elastic?


175

150

275

135

275


Yanıt Açıklaması:

Let us write the demand function for q

q=1750-5p

Taking the derivative with respect to p we get

dq/dp = -5

The price elasticity of demand is

From this equation we can easily write the price for the unit elasticity which is 

1=5p/(1750-5p)

and the sought for price is p=175. Therefore, the answer is A.

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