Suppose the demand for good X is $$Q = 500 P ^ { - 1 }$$ . This demand curve has a ________ (constant, variable) elasticity of demand equal to ________.

Name: Suppose the demand for good X is \[Q = 500 P ^ { - 1 }\] . This demand curve has a ________ (constant, variable) elasticity of demand equal to ________.
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Question

Quizplus · Accepted Answer

The demand curve $Q = 500 P^{-1}$ has a constant elasticity of demand equal to -1 because the exponent of P in the demand equation is -1, indicating unitary elasticity.

Suppose the Demand for Good X Is Q=500P−1Q = 500 P ^ { - 1 }Q=500P−1

Suppose the Demand for Good X Is $Q = 500 P ^ { - 1 }$