2. Assume the demand for a product is given by q = f(p) = 150-p a) Find the elasticity function in terms of p. b) Find the elasticity when the price is $50. c) For which price values, does a decrease in price increase revenue?

ENGR.ECONOMIC ANALYSIS
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**Question 2:**

Assume the demand for a product is given by \( q = f(p) = 150 - p \).

a) Find the elasticity function in terms of \( p \).

b) Find the elasticity when the price is $50.

c) For which price values does a decrease in price increase revenue?
Transcribed Image Text:**Question 2:** Assume the demand for a product is given by \( q = f(p) = 150 - p \). a) Find the elasticity function in terms of \( p \). b) Find the elasticity when the price is $50. c) For which price values does a decrease in price increase revenue?
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Elastic behavior is a term used in economics to describe a shift in buyers' and sellers' behavior in response to a change in an item's or service's price. In other words, demand elasticity or inelasticity refers to how much demand for a good or service varies as its price increases or decreases. 

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