3. Suppose the demand is given by the following function: Q = 2000 - 250*P. At what price per item of this product can total revenues be maximized? Fill in the Table gaps: Demand function Direct Price Elasticity Price per product (EUR) Q = 2000 - 250P JE| = 1 (if TRmax) 250*P = 2000 - 250*P I티 = -250*P/(2000-250"P)| = 1 500*P = 2000 |-250*P| = |2000 - 250*P| P = 2000/500 P= 4

3. Suppose the demand is given by the following function: Q = 2000 - 250P. At what price per item of this product can total revenues be maximized? Fill in the Table gaps: Demand function Direct Price Elasticity Price per product (EUR) Q = 2000 - 250P JE| = 1 (if TRmax) 250P = 2000 - 250P I티 = -250P/(2000-250"P)| = 1 500P = 2000 |-250P| = |2000 - 250*P| P = 2000/500 P= 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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