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Find price demand equation to find E(p) given the demand function  x = 160 - 35*ln p 

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jjmgingrich | Student, Undergraduate | Salutatorian

Posted June 21, 2012 at 3:38 AM via web

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Find price demand equation to find E(p) given the demand function  x = 160 - 35*ln p 

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justaguide | College Teacher | (Level 2) Distinguished Educator

Posted June 21, 2012 at 5:37 AM (Answer #1)

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The price demand function is `x = 160 - 35*ln p`

Price elasticity of demand is the change in demand for a unit change in the price. As the price function is a continuous one, `E(p) = (dx)/(dp)`

`(dx)/(dp) = -35/p`

The price elasticity of demand is `E(p) = -35/p`

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