The Demand Function for a Certain Brand of Compact Disc

question 164

Multiple Choice

The demand function for a certain brand of compact disc is where p is the wholesale unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Compute the elasticity of demand and determine whether the demand is inelastic, unitary, or elastic when x = 13.

• A) unitary
• B) elastic
• C) inelastic

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Definitions:

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