Questions: Consider the following demand function: p=D(x)=143 e^-0.1 x Step 1 of 2 : Find the elasticity function. Answer E(x)=

Transcript text: Question 5 of 14, Step 1 of 2 4/20 Correct Consider the following demand function: \[ p=D(x)=143 e^{-0.1 x} \] Step 1 of 2 : Find the elasticity function. Answer \[ E(x)= \]

Solution

Solution Steps

Step 1: Compute the first derivative of the demand function, \(D'(x)\)

The first derivative of the demand function \(D'(x)\) is: \(D'(x) = - 14.3 e^{- 0.1 x}\)

Step 2: Calculate the elasticity function \(E(x)\)

The elasticity function \(E(x)\) is: \(E(x) = \frac{x}{D(x)} \cdot D'(x) = - 0.1 x\) At \(x = 1\), the elasticity of demand \(E(1)\) is approximately -0.1.