Suppose that the demand equation for a certain item is 1p+1x2−160=0. evaluate the elasticity at 65:

Price elasticity is defined as [tex]\frac{\Delta(quantity)}{\Delta(price)}[/tex].

Here, the question has omitted to define variables, so we will ASSUME
p=price
x=variable,
and we're given
p+x^2-160=0

We calculate
[tex]\delta{x}/\delta{p}[/tex] by implicit differentiation with respect to p:
1+2x (dx/dp)=0
=>
E(x)=(dx/dp)=-1/(2x)

Therefore the price elasticity at x=65 is
E(65)=1/(2*65) =-1/130 (approximately -0.00769)

Answer Link

psm22415 psm22415 · Answer 2 · 2021-12-02T02:42:21+01:00

The required value of elasticity at x = 65 is -0.007.

Given that,

The demand equation for a certain item is [tex]1p + 1x^{2} -160 = 0[/tex].

We have to determine,

The value of elasticity at 65.

According to the question,

The price elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price.

Therefore,

Price of elasticity = [tex]\frac{dp}{dx}[/tex]

Calculate change by differentiation with respect to p:

[tex]\dfrac{d(p+x^{2} -160)}{dx}\\\\1 + 2x\frac{dp}{dx} = 0\\[/tex]

Then,

[tex]E(x) = \frac{dp}{dx} = \frac{-1}{2x}[/tex]

Therefore, The elasticity at x = 65 is ,

[tex]E(65) = \frac{-1}{2(65)} = -0.007[/tex]

Hence, The required value of elasticity at x = 65 is -0.007.

For more information about Elasticity click the link given below.

https://brainly.com/question/14547451