Why demand curve is in fact of constant elasticity variety

Reference no: EM13206290

Consider A monopolist that faces the constant elasticity demand curve y(p) = p^e where e < 0, and the total cost function c() given by c(y) = ky, where k > 0. ASlso assume that the monopolist pays a quantity tax of t > 0.

a) verify that the demand curve is in fact of the constant elasticity variety with an elasticity equal to e.

Reference no: EM13206290

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