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A General Quadratic Demand Function Has the Form to Follow q=cp2+lp+rq = c p ^ { 2 } + l p + r

Question 40

Multiple Choice

A general quadratic demand function has the form to follow. q=cp2+lp+rq = c p ^ { 2 } + l p + r (c, l, r are constants, l0l \neq 0 )

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


A) E=cp2+lp+rE = c p ^ { 2 } + l p + r
B) E=2p+rE = - \frac { 2 } { p + r }
C) E=p(2cp+l) cp2+lp+rE = - \frac { p ( 2 c p + l ) } { c \mathrm { p } ^ { 2 } + l p + r }
D) E=lpE = - l p
E) E=cp+lcp2+lp+rE = \frac { c p + l } { c p ^ { 2 } + l p + r }

Correct Answer:

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