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Question
The demand (D) of biscuits at price P is given by D = `64/"P"^3`, find the marginal demand when price is Rs. 4/-.
Solution
Given demand D =`64/"P"^3`
Now, marginal demand = `("dD")/("dP")`
=`"d"/("dP")(64/"P"^3)`
= `64"d"/("dP")("P"^-3)`
= 64 (– 3) P– 4
= `(-192)/"P"^4`
When P = 4
Marginal demand =`(("dD")/("dP"))_("P"=4)`
= `(-192)/(4)^4`
= `(-192)/256`
= `(-3)/4`
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