Use the demand function to find the rate of change in the demand x for the given price Round your answer to two decimal places.
A) 1.44 units per dollar
B) -0.72 units per dollar
C) 0.72 units per dollar
D) 0.96 units per dollar
E) -1.44 units per dollar

Question

​Use the demand function  to find the rate of change in the demand x for the given price  Round your answer to two decimal places. ​
A) ​1.44 units per dollar 
B) ​-0.72 units per dollar 
C) ​0.72 units per dollar 
D) ​0.96 units per dollar 
E) ​-1.44 units per dollar

Quizplus · Accepted Answer

We can use the formula:

Rate of Change = - (dD/dP) * (P/D)

where D is the demand function, P is the given price, and dD/dP is the derivative of the demand function with respect to price.

Taking the derivative of the demand function, we get:

dD/dP = -0.72P + 72

Substituting P = 50 into dD/dP, we get:

dD/dP = -0.72(50) + 72 = 28

Thus, the rate of change is:

Rate of Change = - (dD/dP) * (P/D) = - (28) * (50/450) = -1.44 units per dollar

Therefore, the best choice is E, which gives the correct answer and explanation.

​Use the Demand Function to Find the Rate of Change

Use the Demand Function to Find the Rate of Change