00:01
So this is another elasticity question, a multipartor, about air travel tickets.
00:11
So we are given a demand price function.
00:18
Demand equals 55 .2 minus 0 .022p.
00:29
So the first thing we can notice is that it looks like the demand doesn't really depend on the price, because the linearity factor, the proportionality factor in front of the p is a very small number.
00:43
So we'll keep that in mind to see if the later answers make sense in this regard.
00:49
So if we want to figure out the elasticity, the first thing we need is the qdp.
00:55
So in this case, it's a linear function.
00:58
So that one is easily seen to be just a constant in front of the p.
01:07
So then e, which is negative p over q times dq dp, is negative p divided by 55 .2 minus 0 .02p, multiplied by nays 0 .022.
01:33
So in the end we get 0 .02p divided by 55 .2 minus 0 .2p.
01:46
So we're asked to find elasticity at a specific price point, namely the price equal to a $166 .1 .1.
02:00
Cents or 10 cents rather...