If demand is given by Q = Ap^-b where A and b are positive constants,the absolute value of price elasticity of demand A)= b. B)= A. C)= A/b. D)depends on the price.

Question

Quizplus · Accepted Answer

The absolute value of the price elasticity of demand is determined by the coefficient of the price in the demand equation, which in this case is -b. The absolute value of -b is b, indicating that the correct answer is A.

If Demand Is Given by Q = Ap-B Where a and B

If Demand Is Given by Q = Ap^-B Where a and B