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 - 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
Chapter6: Elasticities
Section: Chapter Questions
Problem 9P: Evaluate the following statement: Along a downward-sloping linear demand curve, the slope and...
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![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
|티 =D 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F29fd3c75-1285-4f93-8f08-d9e632188599%2F4150709e-00e0-4163-ba56-ea369f755518%2Ftud2iun_processed.png&w=3840&q=75)
Transcribed Image Text: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
|티 =D 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
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