Math Problem Statement

Suppose the demand for a particular commodity follows the equation: where is the price and is the quantity sold. If the price is

increased from 6 to 6.5, what is the approximate fall in sales?

Solution

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Math Problem Analysis

Mathematical Concepts

Calculus
Differentiation
Demand Function
Price Elasticity

Formulas

dq ≈ (dq/dp) * Δp
Demand function: q = f(p)

Theorems

Price Elasticity of Demand

Suitable Grade Level

Undergraduate Economics or Advanced High School (Grades 11-12)