Answer to Question #315445 in Math for Jack Paul

Question

The demand for seats at a mini soccer match is given by

𝑄=150−𝑃

2

,

Q=150−P2,

where 𝑄

Q is the number of seats and 𝑃

P is the price per seat. Find the price elasticity of demand if seats cost 𝑅4

R4 each. What does this value mean?

a.

𝜀𝑑=−0,24;inelastic since|𝜀𝑑

|<1,a1%price increase will result in0,24%less seats to be sold

εd=−0,24;inelastic since|εd|<1,a1%price increase will result in0,24%less seats to be sold

b.

𝜀𝑑=0,24;elastic since|𝜀𝑑

|>0,a1%price increase will result in0,24%more seats to be sold

εd=0,24;elastic since|εd|>0,a1%price increase will result in0,24%more seats to be sold

c.

𝜀𝑑=−16,75;elastic since|𝜀𝑑

|>1,a1%price increase will result in16,75%less seats to be sold

εd=−16,75;elastic since|εd|>1,a1%price increase will result in16,75%less seats to be sold

d.

𝜀𝑑=16,75;elastic since|𝜀𝑑

|<1,a1%price increase will result in16,75%less seats to be sold

Answer 1

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