Non-linear function, Suppose that the demand function for

Non-linear function

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Reference no: EM13995810

Suppose that the demand function for good Z is given as a non-linear function: Qd(P) = aP^b, where a>0 and b<0 are constants and P is the price of good Z.

a) Find price elasticity of demand for Z when P = 1.

b) Find price elasticity of demand for Z when P = 2.

Your answer at (a) and (b) should be the same.

Reference no: EM13995810

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