The demand function for a product is modeled by…

Question

P=20-0.02x,0<x<1000

where P is the price (in dollars) and x is the number of units. Determine the demand is elastic.

A) For x>500

B) For x>250

C) For x<250

D) For x<500

Answer 1

d) x<500

the demand curve is inelastic when price > $10

graph the line, find the midpoint, (500, 10),

above the midpoint, any point on the line is price inelastic