3. The price-demand equation for a milk shake at a fast food restaurant is 0.1x + 10p = 30. (a) For what range of p values is this price-demand equation valid? (b) Find the elasticity E(p), and then evaluate E(1.80). E(p) E(1.80) = % change in x % change in p Recall that for relatively small changes in price from p to p+Ap, E(p) 2 - (c) If the restaurant raises the price for a milk shake from 1.80 to 1.89 (a 5% increase): (i) Will the revenue from selling shakes go up or down? (ii) By about what percentage will the demand for shakes drop? (d) If the restaurant drops the price for a milk shake from 1.80 to 1.74 (a 3% drop): (i) Will the revenue from selling shakes go up or down? (ii) By about what percentage will the demand for shakes increase?
3. The price-demand equation for a milk shake at a fast food restaurant is 0.1x + 10p = 30. (a) For what range of p values is this price-demand equation valid? (b) Find the elasticity E(p), and then evaluate E(1.80). E(p) E(1.80) = % change in x % change in p Recall that for relatively small changes in price from p to p+Ap, E(p) 2 - (c) If the restaurant raises the price for a milk shake from 1.80 to 1.89 (a 5% increase): (i) Will the revenue from selling shakes go up or down? (ii) By about what percentage will the demand for shakes drop? (d) If the restaurant drops the price for a milk shake from 1.80 to 1.74 (a 3% drop): (i) Will the revenue from selling shakes go up or down? (ii) By about what percentage will the demand for shakes increase?
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
Related questions
Question
![**3. The price-demand equation for a milk shake at a fast food restaurant is given by:**
\[ 0.1x + 10p = 30. \]
---
**(a) For what range of \( p \) values is this price-demand equation valid?**
\[ \text{Answer:} \quad \_\_\_\_\_\_\_\_\_ \]
---
**(b) Find the elasticity \( E(p) \), and then evaluate \( E(1.80) \).**
\[ E(p) = \quad \_\_\_\_\_\_\_\_\_ \]
\[ E(1.80) = \quad \_\_\_\_\_\_\_\_ \]
Recall that for relatively small changes in price from \( p \) to \( p + \Delta p \),
\[ E(p) \approx -\frac{\% \text{ change in } x}{\% \text{ change in } p}. \]
---
**(c) If the restaurant raises the price for a milk shake from 1.80 to 1.89 (a 5% increase):**
(i) Will the revenue from selling shakes go up or down?
\[ \text{Answer:} \quad \_\_\_\_\_\_\_\_\_ \]
(ii) By about what percentage will the demand for shakes drop?
\[ \text{Answer:} \quad \_\_\_\_\_\_\_\_\_ \]
---
**(d) If the restaurant drops the price for a milk shake from 1.80 to 1.74 (a \( 3 \frac{1}{3}\% \) drop):**
(i) Will the revenue from selling shakes go up or down?
\[ \text{Answer:} \quad \_\_\_\_\_\_\_\_\_ \]
(ii) By about what percentage will the demand for shakes increase?
\[ \text{Answer:} \quad \_\_\_\_\_\_\_\_\_ \]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad61fb23-6772-4c68-a944-71325d2213c5%2F3842618e-eb36-443b-9b34-37d4ffa0bebb%2Fo0rqh5_processed.png&w=3840&q=75)
Transcribed Image Text:**3. The price-demand equation for a milk shake at a fast food restaurant is given by:**
\[ 0.1x + 10p = 30. \]
---
**(a) For what range of \( p \) values is this price-demand equation valid?**
\[ \text{Answer:} \quad \_\_\_\_\_\_\_\_\_ \]
---
**(b) Find the elasticity \( E(p) \), and then evaluate \( E(1.80) \).**
\[ E(p) = \quad \_\_\_\_\_\_\_\_\_ \]
\[ E(1.80) = \quad \_\_\_\_\_\_\_\_ \]
Recall that for relatively small changes in price from \( p \) to \( p + \Delta p \),
\[ E(p) \approx -\frac{\% \text{ change in } x}{\% \text{ change in } p}. \]
---
**(c) If the restaurant raises the price for a milk shake from 1.80 to 1.89 (a 5% increase):**
(i) Will the revenue from selling shakes go up or down?
\[ \text{Answer:} \quad \_\_\_\_\_\_\_\_\_ \]
(ii) By about what percentage will the demand for shakes drop?
\[ \text{Answer:} \quad \_\_\_\_\_\_\_\_\_ \]
---
**(d) If the restaurant drops the price for a milk shake from 1.80 to 1.74 (a \( 3 \frac{1}{3}\% \) drop):**
(i) Will the revenue from selling shakes go up or down?
\[ \text{Answer:} \quad \_\_\_\_\_\_\_\_\_ \]
(ii) By about what percentage will the demand for shakes increase?
\[ \text{Answer:} \quad \_\_\_\_\_\_\_\_\_ \]
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Calculus: Early Transcendentals
Calculus
ISBN:
9781285741550
Author:
James Stewart
Publisher:
Cengage Learning
Thomas' Calculus (14th Edition)
Calculus
ISBN:
9780134438986
Author:
Joel R. Hass, Christopher E. Heil, Maurice D. Weir
Publisher:
PEARSON
Calculus: Early Transcendentals (3rd Edition)
Calculus
ISBN:
9780134763644
Author:
William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz
Publisher:
PEARSON
Calculus: Early Transcendentals
Calculus
ISBN:
9781285741550
Author:
James Stewart
Publisher:
Cengage Learning
Thomas' Calculus (14th Edition)
Calculus
ISBN:
9780134438986
Author:
Joel R. Hass, Christopher E. Heil, Maurice D. Weir
Publisher:
PEARSON
Calculus: Early Transcendentals (3rd Edition)
Calculus
ISBN:
9780134763644
Author:
William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz
Publisher:
PEARSON
Calculus: Early Transcendentals
Calculus
ISBN:
9781319050740
Author:
Jon Rogawski, Colin Adams, Robert Franzosa
Publisher:
W. H. Freeman
Calculus: Early Transcendental Functions
Calculus
ISBN:
9781337552516
Author:
Ron Larson, Bruce H. Edwards
Publisher:
Cengage Learning