The demand for drangles is given by D(p) = (p + 1)^-², where p is the price of drangles. If the price of drangles is $20, then the price elasticity of demand for drangles is

Question

Quizplus · Accepted Answer

The price elasticity of demand is calculated using the formula: E(p) = (dD/dp) * (p/D(p)). First, find the derivative of D(p): dD/dp = -2(p + 1)^-3. At p = 20, D(20) = (20 + 1)^-2 = 1/441. Then, dD/dp at p = 20 is -2(21)^-3 = -2/9261. Plug these into the elasticity formula: E(20) = (-2/9261) * (20/(1/441)) = -1.90.

The Demand for Drangles Is Given by D(p) = (P