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guest:

Dear All,

Please help to check my answer for below questions :

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the demand function of a product is : Q = 500 - 40P + P2

P : price/unit (dollar), and Q : the amount of production.

questions :

a. Determine the elasticity of demand when the price is = 15.
b. If the price is increased by 5%, what will happen to the demand?

my answer :

a. Q = 500 - (40x15) + 152
= 500 - 600 + 225
= 125

if Q = 500 - 40P + P2, then Q1 = 2P - 40, and P1 = - 1/40 + 1/P
if Q = 500 - 40P + P2, then dQ/dP = 2P - 40, and where did you get P' from?
So I guess Q'=2*15-40=-10

E = dQ/dP x P/Q
= -10 x 15/125
= -1,2 (Do you use commas instead of decimal points?)

b. If the price is increased by 5%, the demand will be decrease to = 1,2 x 5 = 6 (I don't think so)

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Thank you very much for the correction..


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I have never done this before, I just googled it then to see if I could help you.
I think that part a is correct except for the coloured changes/ additions that I did.

Now part b
E = -1.2
I think this means that if price goes up by 1.2%, the demand will go down by 1%
You want to know what will happen to demand if the price goes up by 5%
so let the change in demand be d%
so this is the equation that you have to solve.
1.2% / 1% = 5% / d%

1.2 = 5/d
d = 5/1.2
d = 4.2 (1 dec places)

so if the price increases by 5% I think that the demand will decrease by 4.2%

Like I said, I hadn't even heard these terms before I googled them for you just a moment ago.
But that's what I think.
Jan 16, 2014
 #1
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Jan 16, 2014
 #1
avatar+118725 
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Jan 16, 2014
 #9
avatar+118725 
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Thank you Zamarronics, I think i have fixed all the places where I spelt your name incorrectly.
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Now for the divisability checks. What do we have so far?

1) We have Zamarronics's formula,

2) A number is exactly divisable by 10 if it has a zero at the end. (the last digit is zero)

3) A number is exactly divisable by 2 if it is even.

4) If a number is prime then it is only exactly divisable by 1 and itself

5) A number is exactly divisable by 5 if it ends in 0 or 5

6) A number is exactly divisable by 3 if the sum of its digits is exactly divisable by 3.
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There are lots more to do but lets look at these ones.
Who can give me a number that is at lease 6 digits that is
divisable by 10, 5, 3 and 2

You are not allowed to use you calculator and i don't want you to do the division.
Just with minimal work, I want you to give a number that fits the description and tell everyone why it fits the description.


There are an infinite number of answers so more than one reply would be excellent.
Please join in.
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I'll start. My number is 387,420
It is divisable by 10 and 5 because it ends in a 0
The last digit, 0, is even, so it is divisable by 2
3+8+7+4+2+0 = 24
and 24 is divisable by 3 (24 divided by 3=8)
Therefore 387,420 is divisable by 3
Jan 16, 2014

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