Integration: The demand functions from elasticity of demand

The demand functions from elasticity of demand

Elasticity of the function y = f ( x) at a point x is defined as the limiting case of ratio of the relative change in y to the relative change in x .

Equation yields the demand function ‘p’ as a function of x.

 The revenue function can be found out by using integration.

Example 3.25

When the Elasticity function is x / x-2 Find the function when x = 6 and y = 16.

Solution:

Example 3.26

The elasticity of demand with respect to price p for a commodity is . Find demand function where price is ₹5 and the demand is 70.

Solution