Question
The only type of downward-sloping demand curve that has the same elasticity at every price is given by the constant elasticity functional form Q
The only type of downward-sloping demand curve that has the same elasticity at every price is given by the constant elasticity functional form Q = Ap, where A and & are constants. Show, by differentiating this demand function with respect to p, the elasticity of demand in this case. First, the demand curve differentiated with respect to price (as a function of A, &, and p) is dQ dp A&P- E-1 Therefore, the price elasticity of demand for this demand curve (as a function of ) is dQ p dp Q
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Intermediate Microeconomics and Its Application
Authors: Walter Nicholson, Christopher M. Snyder
12th edition
978-1133189022, 1133189024, 1133189032, 978-1305176386, 1305176383, 978-0357687000, 978-1133189039
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