If the Demand Function for Q Units of a Commodity

question 99

Multiple Choice

If the demand function for q units of a commodity at p$ per unit is given by , find the rate of change of quantity with respect to price when . Round your answer to three decimal places.

• A)0.017
• B)-0.017
• C)0.009
• D)-0.011
• E)0.005

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Definitions:

Wage Rate

The standard amount of compensation that employees receive in exchange for performing a specific task or job per time period.

Substitution Effect

The adjustment in purchasing behaviors as a result of variations in the comparative costs of products, prompting buyers to switch from one item to another that is either cheaper or more costly.

Output Effect

The impact on economic output and productivity resulting from a change in the level of economic activity.

Wage Rate

The amount of money paid to workers per unit of time, often hourly or monthly, for their labor.