Researchers found the demand for cheese in a particular country for a particular year can be estimated by the implicit equation Inq=D-0.74Inp, where p represents the price of a unit of cheese and D represents a constant that can be calculated uniquely for a particular year. Here q represents the annual per capita cheese demand. Answer parts (a) and (b) below. (a) Use implicit differentiation to calculate and interpret the elasticity of demand. Recall that elasticity of demand is E= p/q dq/dp Show the first step of implicit differentiation, the equation that results from differentiating each side of the equation. _____dq/dp=_____ Find the elasticity of demand. E= (Simplify your answer) Interpret the elasticity of demand you calculated. A. Demand is elastic. B. Demand is inelastic. C. Demand has unit elasticity. D. Demand may be elastic or inelastic, depending on the value of D. (b) Solve the equation for q, then calculate the elasticity of demand. =. E=

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