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A General Hyperbolic Demand Function Has the Form to Follow q=mpzq = \frac { m } { p ^ { z } }

Question 4

Multiple Choice

A general hyperbolic demand function has the form to follow. q=mpzq = \frac { m } { p ^ { z } } (s, m - nonzero constants)

Obtain a formula for the elasticity of demand at a unit price of p.


A) E=smpE = s m p
B) E=mE = m
C) E=sE = s
D) E=spmE = \frac { s p } { m }
E) E=mpE = - m p

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