
College Mathematics: Learning Worksheets Chapter 10
297
Name ________________________________ Date ______________ Class ____________
Goal: To determine the elasticity of demand for functions
1. Given 2
( ) 25 0.4 ,
xxx=− find the relative rate of change.
Section 10-7 Elasticity of Demand
Definition: Relative and Percentage Rates of Change
The relative rate of change of a function ()
xis ()
.
()
x
x
Theorem 1: Elasticity of Demand
If price and demand are related by (),
fpthen the elasticity of
demand is given by
a) If 0()1,Epthen demand is inelastic.
b) If () 1,Epthen demand is unit.
c) If () 1,Epthen demand is elastic.