Use the price-demand equation to determine whether demand is elastic, is inelastic, or has unit elasticity at the indicated
values of p.
-x = f(p) = 214 - 5p; p = 31.
A) Inelastic
B) Elastic
C) Unit elasticity

Question

Quizplus · Accepted Answer

To determine elasticity, calculate the elasticity of demand using the formula E(p) = (f'(p) * p) / f(p). Here, f(p) = 214 - 5p, so f'(p) = -5. At p = 31, x = 214 - 5(31) = 59. E(31) = (-5 * 31) / 59 = -155/59 ≈ -2.63. Since the absolute value is greater than 1, demand is elastic.

Use the Price-Demand Equation to Determine Whether Demand Is Elastic