Let the demand for physician visits have the following demand curve function,
where p is price and Q_d is quantity demand.Find the elasticity of demand at a price of $100.

Question

Let the demand for physician visits have the following demand curve function, where p is price and Q_d is quantity demand.Find the elasticity of demand at a price of $100.

Quizplus · Accepted Answer

The Answer is The elasticity of demand asks: By what percentage does quantity change for a 1% change in price.A 1% change in price is equal to 1.Quantity at p = 100 is 500 office visits.Quantity at p = 101 is 495.

The elasticity of demand asks: By what percentage does quantity change for a 1% change in price.A 1% change in price is equal to 1.Quantity at p = 100 is 500 office visits.Quantity at p = 101 is 495.

Let the Demand for Physician Visits Have the Following Demand