A general hyperbolic demand function has the form to follow. ( - nonzero constants)Obtain a formula for the elasticity of demand at a unit price of .

Question

A general hyperbolic demand function has the form to follow.  (  - nonzero constants)Obtain a formula for the elasticity of demand at a unit price of  .

Quizplus · Accepted Answer

The elasticity of demand at a unit price of p can be calculated using the formula:
E(p) = -p(dQ/dp)(1/Q) where Q is the demand function.

In this case, we have the demand function: Q = (11ebfe6a_2cda_fe65_96cc_2d1f0be15644_TBX8650_11) / (p - 11ebfe6a_2cda_fe66_96cc_b943553fea85_TBX8650_11)

Taking the derivative of Q with respect to p, we get:
dQ/dp = -11ebfe6a_2cda_fe65_96cc_2d1f0be15644_TBX8650_11 / (p - 11ebfe6a_2cda_fe66_96cc_b943553fea85_TBX8650_11)^2

Substituting this into the elasticity formula, we get:
E(p) = -p(-11ebfe6a_2cda_fe65_96cc_2d1f0be15644_TBX8650_11 / (p - 11ebfe6a_2cda_fe66_96cc_b943553fea85_TBX8650_11)^2) (1/((11ebfe6a_2cda_fe65_96cc_2d1f0be15644_TBX8650_11) / (p - 11ebfe6a_2cda_fe66_96cc_b943553fea85_TBX8650_11)))
Simplifying this expression, we get:
E(p) = 11ebfe6a_2cda_fe6a_96cc_83423dcc66f7_TBX8650_11 / (p - 11ebfe6a_2cda_fe66_96cc_b943553fea85_TBX8650_11)

Therefore, the answer is (C) 11ebfe6a_2cda_fe6a_96cc_83423dcc66f7_TBX8650_11.

A General Hyperbolic Demand Function Has the Form to Follow