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(a) Find the elasticity of the demand function p + 2p + q = 36 atp = 5. (b) How will a price increase affect total revenue? Since the demand is unitary, there will be no change in the revenue with a price increase. Since the demand is elastic, an increase in price will decrease the total revenue. Since the demand is inelastic, an increase in price will decrease the total revenue. Since the demand is elastic, an increase in price will increase the total revenue. O since the demand is inelastic, an increase in price will increase the total revenue.

(a) Find the elasticity of the demand function p + 2p + q = 36 atp = 5. (b) How will a price increase affect total revenue? Since the demand is unitary, there will be no change in the revenue with a price increase. Since the demand is elastic, an increase in price will decrease the total revenue. Since the demand is inelastic, an increase in price will decrease the total revenue. Since the demand is elastic, an increase in price will increase the total revenue. O since the demand is inelastic, an increase in price will increase the total revenue.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function p2 + 2p + q = 36 at p = 5. (b) How will a price increase affect total revenue? Since the demand is unitary, there will be no change in the revenue with a price increase. Since the demand is elastic, an increase in price will decrease the total revenue. Since the demand is inelastic, an increase in price will decrease the total revenue. Since the demand is elastic, an increase in price will increase the total revenue. Since the demand is inelastic, an increase in price will increase the total revenue.
Transcribed Image Text:In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function p2 + 2p + q = 36 at p = 5. (b) How will a price increase affect total revenue? Since the demand is unitary, there will be no change in the revenue with a price increase. Since the demand is elastic, an increase in price will decrease the total revenue. Since the demand is inelastic, an increase in price will decrease the total revenue. Since the demand is elastic, an increase in price will increase the total revenue. Since the demand is inelastic, an increase in price will increase the total revenue.
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