Economics Homework Solutions
#215761
The problem begins with a non-linear two-variable demand function. I review the definition of convexity regarding the second derivative test then solve the first and second derivatives to show that the function is convex. I plot the function out in two dimensional space as well.
The demand function for Sprint shoes is given by
P = 24q + 1200/ q+ 20 q>0
Comment on whether this demand function is concave, convex, strictly concave, or strictly convex. Explain why and draw a rough diagram for it.
Given a demand function, I plot it out then provide a discussion regarding the convexity of the function.
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