Question

Consider the following demand function with demand x and price p. x = 600 - P - 3p P + 1 Find dx dp dx dp Find the rate of change in the demand x for the given price p. (Round your answer in units per dollar to two decimal places.) p = $4 units per dollar

Answer 1

Explanation:

We have the demand function: x = 600 - P - 3p P + 1.

Taking the partial derivative of x with respect to p, we get:

dx/dp = -4/(P+1)^2

Substituting p = 4, we get:

dx/dp | p=4 = -4/(4+1)^2 = -0.064

So the rate of change in the demand x for the price $4 is approximately -0.06 units per dollar.