3) 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, or does it have unit elasticity? Explain what this means for this product.

(a)20

(b)Elastic

(c)8

(d) Elastic

Step-by-step explanation:

Elasticity of demand(E) indicates the impact of a price change on a product's sales.

The general formula for an exponential demand curve is given as:

Given the demand curve formula

The formula for Elasticity of demand, E

(a)When Price,  p = $50

p=50

Therefore:

(b)At p = $50, Since elasticity is greater than 1, the demand is elastic.

An elasticity value of 20 means that a 1% increase in price causes a 20% decrease in demand.

(c)At p=$20

p=20

Therefore:

(d)At p = $20, the demand is elastic.

An elasticity value of 8 means that a 1% increase in price causes a 8% decrease in demand.

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step-by-step explanation:

step-by-step explanation:

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