In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function pg = 21 at p = 3. (b) How will a price increase affect total revenue? O 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. O Since the demand is unitary, there will be no change in the revenue with a price increase.
In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function pg = 21 at p = 3. (b) How will a price increase affect total revenue? O 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. O Since the demand is unitary, there will be no change in the revenue with a price increase.
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 pg = 21 at p = 3.
(b) How will a price increase affect total revenue?
O since the demand is elastic, an increase in price will decrease the total revenue.
O since the demand is inelastic, an increase in price will decrease the total revenue.
O 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.
O since the demand is unitary, there will be no change in the revenue with a price increase.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b81583b-a567-47d2-a196-b2546011bb07%2F8279ed5d-12f9-40b5-a7fb-e61442d80f0a%2Ffmdo0c_processed.png&w=3840&q=75)
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 pg = 21 at p = 3.
(b) How will a price increase affect total revenue?
O since the demand is elastic, an increase in price will decrease the total revenue.
O since the demand is inelastic, an increase in price will decrease the total revenue.
O 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.
O since the demand is unitary, there will be no change in the revenue with a price increase.
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