Question
a) Demand for a product is related to its price (in dollars per unit) by the equation p = 144 - 4q . Find the
a) Demand for a product is related to its price (in dollars per unit) by the equation p = 144 - 4q . Find the price elasticity of demandwhen the price is $28 per unit.Is demand inelastic, unit elastic or elastic at this price?(3 marks)
b) Due to a sudden shortage, the price of the product from isincreased to $72 per unit.Is to demand inelastic, unit elasticor elastic at this price?(2 marks)
c) Explain what this result actually means in terms of changes in price and demand.(1 mark)
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
