Final answer:
The question involves the calculation of the point elasticity of demand when p = 4. To do this, we insert p into the price-demand equation to find D(p), calculate D'(p)(the rate of change of quantity), and then use the elasticity formula E = (D'(p) * p) / D(p).
Step-by-step explanation:
The question asks for calculating the point elasticity of demand for a product when the price p is 4, given the price-demand equation D(p) + 600p = 12000.
Point elasticity of demand measures how much the quantity demanded changes with a change in price at a particular point on the demand curve. The general formula for point elasticity is:
Elasticity (E) = (% change in quantity demanded) / (% change in price)
To find point elasticity, we first need to determine the quantity demanded at p = 4 by inserting the value into the given equation, then finding D(p), then computing the derivative of D with respect to p (D'(p)) at that point to find the rate of change of quantity demanded with respect to price.
Finally, we use the formula:
E = (D'(p) * p) / D(p)
The detailed steps of solving for D(p), finding D'(p), and calculating the elasticity at p = 4 will provide the student with the point elasticity of demand at that price.