In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function p + 7q = 210 at (q, p) = (15, 105). (b) How will a price increase affect total revenue? O Since the demand is elastic, an increase in price will increase the total revenue. Since the demand is elastic, an increase in price will decrease the total revenue. Since the demand is unitary, there will be no change in the revenue with a price increase. O Since the demand is inelastic, an increase in price will decrease the total revenue. Since the demand is inelastic, an increase in price will increase the total revenue.
In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function p + 7q = 210 at (q, p) = (15, 105). (b) How will a price increase affect total revenue? O Since the demand is elastic, an increase in price will increase the total revenue. Since the demand is elastic, an increase in price will decrease the total revenue. Since the demand is unitary, there will be no change in the revenue with a price increase. O Since the demand is inelastic, an increase in price will decrease the total revenue. Since the demand is inelastic, an increase in price will increase the total revenue.
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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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 p + 7q = 210 at (q, p) = (15, 105).
(b) How will a price increase affect total revenue?
Since the demand is elastic, an increase in price will increase the total revenue.
Since the demand is elastic, an increase in price will decrease the total revenue.
Since the demand is unitary, there will be no change in the revenue with a price increase.
Since the demand is inelastic, an increase in price will decrease the total revenue.
Since the demand is inelastic, an increase in price will increase the total revenue.
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