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Questions › UoH › UoH 2020 › Q92
1 mark, −0.33Microeconomics › Demand theory and elasticity › Price elasticity of demandHardabout 2 min

UoH 2020 Question 92: Demand theory and elasticity

The demand function a firm is facing is q=40p−6p2q = 40p - 6p^2q=40p−6p2. If the Point elasticity of demand is ed=−12e_d = -\frac{1}{2}ed​=−21​, What is the price at that point of production?

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The demand function a firm is facing is q = 40p - 6p². If the Point elasticity of demand is e_d = -1/2, What is the price at that point of production? (A) p = 12 (B) p = 6 (C) p = 4 (D) p = 32

Also written as: The demand function a firm is facing is q = 40p - 6p^2. If the Point elasticity of demand is e_d = -1/2, What is the price at that point of production?

Demand theory and elasticity has come up 161 times in 7 exams since 2004.

What this question tests

This question is on Price elasticity of demand, part of Demand theory and elasticity in Microeconomics.

How responsive quantity is to price, at a point, along a linear curve, and for constant-elasticity demand.

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