1. A restaurant estimates that the quantity q of its burger sold is related to the price for each burger p by the demand equation for 0 ≤p ≤ 18. q=√36-2p, a) Find the elasticity of demand. dra) तब da 1 2√36-20 √36-28 da , - ap) (36

1. A restaurant estimates that the quantity q of its burger sold is related to the price for each burger p by the demand equation for 0 ≤p ≤ 18. q=√36-2p, a) Find the elasticity of demand. dra) तब da 1 2√36-20 √36-28 da , - ap) (36

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please show full steps

d) Use elasticity of demand to find the price at which the revenue is maximised.
P= P
36-2P
D
G
p=
= 36-ар
e) Use the result in (d) to find the quantity of burgers sold when the revenue is maximised.
8= 12
7
36-2(19)
62
~ 3.46
f) Find the maximum revenue from the sale of burgers.
13 are sold
R = P²q = 12 1√T2 = 141,57
Find the derivative for the function f(x) = sin-¹ √√x.

1. A restaurant estimates that the quantity q of its burger sold is related to the price for each
burger p by the demand equation
for 0 ≤p ≤ 18.
a) Find the elasticity of demand.
da)
dop
q=√ 36-2p,
dp
da
2√36-20
2.536-ар
др
(√36-2p)
d (36
da
(0-28 ele)
(36 - ap)
P(11) = -1/
2√36-2P
Q =
b) Find the elasticity of demand when the price of a burger is $11.
-= 0.39
72-41(11)
36-2P
P((() = -36-Q (11)
c) Should the price of a burger increase or decrease from $11 to increase the revenue?
Explain using the result in (b).

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Step 1: Introduce the concept of elasticity of demand.

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Step 2: a) Find the price elasticity of demand.

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Step 3: b) Find the elasticity of demand when the price of a burger is $11.

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Step 4: c) Determine should the price of a burger increase or decrease from $11 to increase the revenue.

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