Let X Represent the Units of Labor and Y the Capital

question 20

Multiple Choice

Let x represent the units of labor and y the capital invested in a manufacturing process. When 135,540 units are produced, the relationship between labor and capital can be modeled by $100 x ^ { 0.75 } y ^ { 0.25 } = 135,540$ . Find the rate of change of y with respect to x when $x = 1500 \text { and } y = 135,540$ .

• A)-2
• B)0
• C)3
• D)-7
• E)5

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Definitions:

Demand Curves

A graph representing the relationship between the price of a good and the quantity of that good buyers are willing to purchase at various prices.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, defined as the percentage change in quantity demanded divided by the percentage change in price.

Estimating Price Elasticity

The process of calculating how sensitive the quantity demanded of a good is to a change in its price.

Price Elasticity

A quantification of demand fluctuation for a product based on its price alteration.