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The demand for a product is given by $q=\frac{10}{\sqrt {4p+1}}$. find the marginal demand at p=6.

Worksheet i am solving contain all questions to find price elasticity of demand except above. And if i use formula of price elasticity then incorrect answer. Please help me.

Wow great. If anyone dont know even the formula. Then what to do?

Raj Kumar Singh
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1 Answers1

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Marginal demand: $\frac{dq}{dp}=\frac{-20}{(4p+1)^{3/2}}$.

Price elasticity of demand: $E_p=\frac{p}{q}\cdot \frac{dq}{dp}$.

Can you finish?

farruhota
  • 31,482
  • I get the same answer as you get. But the given $\frac4{25}$ – Raj Kumar Singh May 23 '18 at 09:55
  • What about the negative sign? – Raj Kumar Singh May 23 '18 at 09:57
  • According to the law of demand, the price and quantity demanded are negatively related. That is, if price increases (decreases), the quantity demanded decreases (increases). Usually, the price elasticity of demand is also given as positive, although the relationship is negative. It goes without saying. Though cross-price elasticity is given as it is, because it shows the type of product (substitute or complementary). – farruhota May 23 '18 at 10:00
  • Please answer me in simple words. Can we ignore negative sign? And Which answer is correct? – Raj Kumar Singh May 23 '18 at 10:02
  • For the given demand function, I think, the sign must be negative. – farruhota May 23 '18 at 10:11
  • @RajKumarSingh It depends how the price elasticity is defined you are supposed to use. in some cases it is defined with a negative sign and in other cases it is not. – callculus42 May 23 '18 at 15:41