**Question:**For an elastic demand function, the derivative of the revenue function with respect to price is:**Select one:**- a. positive.- b. negative.- c. infinite.- d. zero.**Note:** The correct answer is option **b. negative.****Explanation:**For an elastic demand function, a small change in price leads to a relatively larger change in the quantity demanded. In such cases, an increase in price will result in a decrease in total revenue, since consumers are sensitive to price changes. Thus, the derivative of the revenue function with respect to price is negative.

The revenue function is the product of price and quantity demanded, which is a function of price.…

Answered: For an elastic demand function, the…

For an elastic demand function, the derivative of the revenue function with respect to price is: Select one: a. positive. O b. negative. O c. infinite. O d. zero.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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