A General Linear Demand Function Has the Form to Follow $q = k p + b$

question 21

Multiple Choice

A general linear demand function has the form to follow. $q = k p + b$ (k and b constants, with $k \neq 0$ )

Obtain a formula for the elasticity of the demand at a unit price p.

• A) \(E = - \frac { p } { k + b }\)
• B) \(E = b + k p\)
• C) \(E = - \frac { k p } { k p + b }\)
• D) \(E = \frac { k p } { b }\)
• E) \(E = - \frac { p } { p + b }\)

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