In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function p + 8q = 480 at (q, p) = (30, 240). (b) How will a price increase affect 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 + 8q = 480 at (q, p) = (30, 240). (b) How will a price increase affect total revenue?
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter7: Analytic Trigonometry
Section7.6: The Inverse Trigonometric Functions
Problem 91E
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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
(b) How will a price increase affect total revenue?
p + 8q = 480
at
(q, p) = (30, 240).
(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 inelastic, an increase in price will increase 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 decrease the total revenue.Since the demand is elastic, an increase in price will decrease the total revenue.
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