For the Demand Function Q = 150(245 - $p ^ { 2 }$

question 25

Multiple Choice

For the demand function q = 150(245 - $p ^ { 2 }$ ) , find E(p) and determine if the demand is elastic or inelastic (or neither) at the price p =7.

• A) E(p) = \(\frac { p ^ { 2 } } { 245 - p ^ { 2 } }\) , elastic
• B) E(p) = \(\frac { 2 p ^ { 2 } } { 245 - p ^ { 2 } }\) , elastic
• C) E(p) = \(\frac { p ^ { 2 } } { 245 - p ^ { 2 } }\) , inelastic
• D) E(p) = \(\frac { 2 p ^ { 2 } } { 245 - p ^ { 2 } }\) , inelastic

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Definitions:

Expected Rate of Return

The anticipated profit or loss on an investment, often based on historical data or statistical analysis.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.

Monetary Authorities

Institutions, typically government bodies or central banks, responsible for controlling a country's money supply and implementing monetary policy.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.