Given the demand function D(p) = √375 - 4p, How many products will be sold if the price is $2? 19.1572 Find the Elasticity function 2p 375-4p Find the Elasticity of Demand at a price of $2 E(p) X
Given the demand function D(p) = √375 - 4p, How many products will be sold if the price is $2? 19.1572 Find the Elasticity function 2p 375-4p Find the Elasticity of Demand at a price of $2 E(p) X
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![### Demand and Elasticity Analysis
**Given the demand function:**
\[ D(p) = \sqrt{375 - 4p} \]
**Calculate Quantity Sold at $2:**
How many products will be sold if the price is $2?
- Calculated Quantity: 19.1572 (incorrect calculation)
**Find the Elasticity Function:**
\[ E(p) = \frac{2p}{375 - 4p} \]
**Calculate Elasticity at $2:**
Find the Elasticity of Demand at a price of $2:
- Elasticity: 0.0109 (correct calculation)
**Demand Classification at $2:**
At this price, we would say the demand is:
- **Elastic:** Selected
- **Unitary**
- **Inelastic:** Correct classification (incorrectly selected)
**Revenue Strategy Based on Elasticity:**
Based on this, to increase revenue we should:
- **Keep Prices Unchanged:** Selected
- **Raise Prices**
- **Lower Prices** (incorrectly selected)
**Optimal Pricing for Revenue Maximization:**
What price will maximize revenue?
- Information not provided in the exercise. Further analysis required.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7038cbde-5259-4f1b-ade8-fa8f6320a6eb%2Fec78cc2f-c083-4732-994d-f3572c324d99%2Fu7q5vl_processed.png&w=3840&q=75)
Transcribed Image Text:### Demand and Elasticity Analysis
**Given the demand function:**
\[ D(p) = \sqrt{375 - 4p} \]
**Calculate Quantity Sold at $2:**
How many products will be sold if the price is $2?
- Calculated Quantity: 19.1572 (incorrect calculation)
**Find the Elasticity Function:**
\[ E(p) = \frac{2p}{375 - 4p} \]
**Calculate Elasticity at $2:**
Find the Elasticity of Demand at a price of $2:
- Elasticity: 0.0109 (correct calculation)
**Demand Classification at $2:**
At this price, we would say the demand is:
- **Elastic:** Selected
- **Unitary**
- **Inelastic:** Correct classification (incorrectly selected)
**Revenue Strategy Based on Elasticity:**
Based on this, to increase revenue we should:
- **Keep Prices Unchanged:** Selected
- **Raise Prices**
- **Lower Prices** (incorrectly selected)
**Optimal Pricing for Revenue Maximization:**
What price will maximize revenue?
- Information not provided in the exercise. Further analysis required.
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