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Nancy's Chocolates Estimates That the Elasticity of Demand for Its E=0.06p2E = 0.06 p - 2

Question 9

Multiple Choice

Nancy's Chocolates estimates that the elasticity of demand for its dark chocolate truffles is E=0.06p2E = 0.06 p - 2
Where p is the price per pound. Nancy's sells 19 pounds of truffles per week when the price is $23 per pound. Find the formula expressing the demand q as a function of p. Recall that the elasticity of demand is given by E=dq dp×pqE = - \frac { \mathrm { d } q } { \mathrm {~d} p } \times \frac { p } { q } .

NOTE: Round the value of the constant in your answer to four decimal places.


A) q=0.1428e0.06pq = 0.1428 e ^ { - 0.06 p }
B) q=0.1428e0.06pp2q = 0.1428 e ^ { - 0.06 p } p ^ { 2 }
C) q=e0.06pp2q = e ^ { - 0.06 p } p ^ { - 2 }
D) q=0.1428e0.06pp2q = 0.1428 e ^ { 0.06 p } p ^ { 2 }
E) q=0.1428e2.06pq = 0.1428 e ^ { - 2.06 p }

Correct Answer:

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