Asked by Lee
The number of people taking the bus at price p dollars per ticket is given by x=5000(5-p)^1/2.
For what value of P is the demand unitary?
For what value of P is the demand unitary?
Answers
Answered by
drwls
"Unitary demand" occurs where p*x = constant, which also implies that
dp/p = -dx/x,
which is another way of saying
dx/dp = -x/p
In your case
dx/dp = -5000*(1/2)/(5-p)^1/2
= -2500/(5-p)^1/2
= -x/p = -5000*(5-p)^1/2*(1/p)
1 = 2*(5-p)/p
p = 10 - 2p
p = $3.33
dp/p = -dx/x,
which is another way of saying
dx/dp = -x/p
In your case
dx/dp = -5000*(1/2)/(5-p)^1/2
= -2500/(5-p)^1/2
= -x/p = -5000*(5-p)^1/2*(1/p)
1 = 2*(5-p)/p
p = 10 - 2p
p = $3.33
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.