Nancy's Chocolates Estimates That the Elasticity of Demand for Its $E = 0.06 p - 2$

question 84

Multiple Choice

Nancy's Chocolates estimates that the elasticity of demand for its dark chocolate truffles is $E = 0.06 p - 2$
Where p is the price per pound. Nancy's sells 19 pounds of truffles per week when the price is $23 per pound. Find the formula expressing the demand q as a function of p. Recall that the elasticity of demand is given by $E = - \frac { \mathrm { d } q } { \mathrm {~d} p } \times \frac { p } { q }$ .

NOTE: Round the value of the constant in your answer to four decimal places.

• A) \(q = 0.1428 e ^ { - 0.06 p }\)
• B) \(q = 0.1428 e ^ { - 0.06 p } p ^ { 2 }\)
• C) \(q = e ^ { - 0.06 p } p ^ { - 2 }\)
• D) \(q = 0.1428 e ^ { 0.06 p } p ^ { 2 }\)
• E) \(q = 0.1428 e ^ { - 2.06 p }\)

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Definitions:

Balance of Trade Deficit

An economic measure where a country's imports exceed its exports during a specific time period.

Imports and Exports

The practice of bringing goods and services into a country (imports) and sending goods and services out of a country (exports) to engage in international trade.

United States

A country located in North America comprised of 50 states, a federal district, five major self-governing territories, and various possessions, known for its diverse geography, culture, and economy.

Countertrade

A method of trade in which goods or services are exchanged for other goods or services rather than for money.