A General Exponential Demand Function Has the Form to Follow $q = A e ^ { - m q }$

question 70

Multiple Choice

A general exponential demand function has the form to follow. $q = A e ^ { - m q }$ (A, m - nonzero constants)

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

• A) \(E = A m p\)
• B) \(E = - A p\)
• C) \(E = \frac { A p } { m }\)
• D) \(E = - A e ^ { - m }\)
• E) \(E = m p\)