Answer:
The values of p for which demand has elastic and inelastic elasticity is 15.38
Explanation:
given; x = f(p) = 246 - 8p
Elasticity is given by E(p) = [ -p × f'(p) ] ÷ [ f(p) ]
E(p) = [ -p × (-8) ] ÷ [ 246 - 8p ]
E(p) = 8p ÷ (246 - 8p)
to determine the values of p for which demand has elastic and inelastic elasticity.
1) for demand has elastic elasticity, E(p) > 1
8p ÷ (246 - 8p) > 1
8p > 246 - 8p
16p > 246
p > 15.38
2) for demand has inelastic elasticity, E(p) < 1
8p ÷ (246 - 8p) < 1
8p < 246 - 8p
16p < 246
p < 15.38
p > 15.38 , and p < 15.38, this is a unit elasticity
