Consider the demand function D(p)=5p3, (p>0). Use elasticity to determine the approximate percentage increase in p if D increases by 4%.
12
Since no value for p is given, this cannot be determined.
113
564
Consider the demand function D(p)=5p3, (p>0). Use elasticity to determine the approximate percentage increase in p if D increases by 4%.
Antwoord 1 correct
Correct
Antwoord 2 optie
Since no value for p is given, this cannot be determined.
Antwoord 2 correct
Fout
Antwoord 3 optie
12
Antwoord 3 correct
Fout
Antwoord 4 optie
564
Antwoord 4 correct
Fout
Antwoord 1 optie
113
Antwoord 1 feedback
Correct:
ϵ=D(p)pD(p)=15p4p5p3=15p35p3=3.

Hence, for every value of p it holds that ϵ=3.

Then, pluggin in the values into %ΔDϵ%Δp gives 43%Δp. Hence, %Δp43=113.

Go on.
Antwoord 2 feedback
Wrong: In this case the elasticity is not depending on p.

Try again.
Antwoord 3 feedback
Wrong: Note that %D=4.

See Elasticity.
Antwoord 4 feedback
Wrong: Calculating 543 has nothing to do with this exercise.

See Elasticity.