Research has shown that the relationship between the price of a cup of coffee, p in dollars, and the demand, x in number of cups sold (per day), is
p = 6 - 0.1x
The Elasticity of Demand can be written as a formula
\(E(p) = \frac{-pf'(p)}{f(p)}\
Where \(E(p)\) is the elasticity, p is the unit price, and x = f(p) is the demand.
a. Find the elasticity of demand formula for a cup of coffee.
\(E(p) =\
b. Use the elasticity of demand formula to fill out the following table.
Interpretation: If the price is increased by 10%...
Price of cup of coffee Elasticity of
Demand The price is ...
$1
$2
$3
$4
$5