For a certain good we have LaTeX: q=f\left(p\right)=200e^{-0.4p}q = f ( p ) = 200 e − 0.4 p. a) Find the elasticity of demand at price p = $50. b) At p = $50, is the demand elastic, inelastic, or does it have unit elasticity? Explain what this means for this product. c) Find the elasticity of demand at price p = $20. d) At p = $20, is the demand elastic, inelastic, o

a) 20

b) elastic

c) 8

d) elastic

Explanation:

Given that q = f ( p ) =

a) The elasticity of demand is given as:

Elasticity of demand =

At p =$50,

q = f ( p ) = =

Elasticity of demand = =

b)  At p = $50, it is elastic Since Elasticity of demand  is greater than 1 it is elastic. That is the price have a big effect on the quantity

c)  The elasticity of demand is given as:

Elasticity of demand =

At p =$20,

q = f ( p ) = =

Elasticity of demand = =

d) At p = $20, it is elastic Since Elasticity of demand  is greater than 1 it is elastic

answer casual models;