The demand equation for the Roland portable hairdryer is given as follows where x (measured in units of a hundred) is the quantity demanded per week and p is the unit price in dollars. Is the demand elastic or inelastic when p = 5?

Explanation:

The concept of elastic and inelastic demand is applied.

for an elastic demand, the elasticity must be greater than 1 and for an Inelastic demand, the elasticity must be less than 1.

The steps and appropriate calculation is as shown in the attached file.

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