Consider the following demand function with a constant slope. Let Q(p) describe the quantity demanded of the product with respect to price. In this instance Q(p) will take the form Q(p)=a−bp where 0≤p≤a/b.
Note: The following is a graph of p(Q) not Q(p).

http://imageshack.us/a/img822/5564/ob50k849dw034613setassi.png

The price elasticity of demand as a function of price is given by the equation E(p)=[Q′(p)][p/(Q(p))].
Find (dE)/(dp) and (d^(2)E)/(dp^(2)) (your answers should be in terms of a,b, and p ).

dE/dp=

Question

Consider the following demand function with a constant slope. Let Q(p) describe the quantity demanded of the product with respect to price. In this instance Q(p) will take the form Q(p)=a−bp where 0≤p≤a/b.
Note: The following is a graph of p(Q) not Q(p).

http://imageshack.us/a/img822/5564/ob50k849dw034613setassi.png

The price elasticity of demand as a function of price is given by the equation E(p)=[Q′(p)][p/(Q(p))].
Find (dE)/(dp) and (d^(2)E)/(dp^(2)) (your answers should be in terms of a,b, and p ).

dE/dp=

goformit100 · Answer

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