Answer:
-14
Explanation:
Elasticity of demand is the degree of change in demand after a change I'm price, basically demand's sensitivity to price change.
Formula for calculating price elasticity is: change in price/change in quantity =dq/dp
Since we are given p²+2p+q=49 and not initial and current amount of price and quantity, we differentiate to find demand elasticity, thus:
2p+2+dq/dp=0
dq/dp=-2p-2
Given p =6, we substitute:
dq/dp=-2×6-2
dq/dp=-12-2
dq/dp=-14
With a demand elasticity of -14 there is an inverse relationship between price and demand. While price increases, demand falls.
