i.ii.iii.Suppose the demand function for a product is given by(3000-9where p is in hundreds of RM and q is the number of tons.Determine the point elasticity of demand when the quantity demanded is 6tons.is demand elastic, is it inelastic, or does it have unit elasticity at this point?Approximate the percentage change in price if the demand of 6 tons isdecreased by 3%.

We have to find the demand equation and differentiate it w.r.t price

Answered: Suppose the demand function for a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Currently, 10,000 people take city buses each day and pay 2 dollars for a ticket. The number of people taking city buses at price p dollars per ticket is given X = 5000 6-p (a) Evaluate the elasticity at 5. E(5) (b) Currently, the price per ticket is 2 dollars. Should the price be raised in order to increase revenue? Enter 1 for Yes or 2 for No. answer = (c) For what value of p, the demand is unitary.p = = (d) What is the maximum revenue? Revenue =
The demand for ceiling fans can be modeled as D(p) = 25.02(0.992) thousand ceiling fans where p is the price (in dollars) of a ceiling fan. (a) Locate the point of unit elasticity. (Round your answers to two decimal places.) The point of elasticity occurs when p = $ and D(p) = thousand ceiling fans. (b) For what prices is demand elastic? For what prices is demand inelastic? (Round your numerical answers to two decimal places.) Demand is inelastic for < p < Demand is elastic for p ? ✓
Given the demand equation, Q = 120000 -10P2 for this equation, write the expression for the point price elasticity of demand as a function of P Over what range of the prices is the demand inelastic?
The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 97e° -3p²/2, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥ 400. E = X Interpret your answer. The demand is going down ✔✔✔ by X% per 1% increase in price at that price level. Thus, large price decrease ✓ (b) At what price will revenue be a maximum? (Round your answer to the nearest integer.) X yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) paint-by-number sets per month is advised.
If the price of Pepsi-Cola increases from 40 cents to 50 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the value of the price elasticity of demand for Pepsi-Cola is:
Suppose the price elasticity of demand for a firm's specific product is given by E = 2*(0.5-171/Q). What quantity maximizes the firm's total revenue? Please do fast ASAP fast
If the price of new automobiles decreases by 5%, and the quantity of new automobiles demanded increases by 20%, then the price elasticity of demand is equal to: 1.1. 2. 0.25. 3.4. 4.0.75.
Worldwide annual sales of smart phones in over a five-year period were projected to be approximately q=-10p+4440 million phones at a selling price of $P per phone. Obtain a formula for the price of elasticity of demand E. In one particular year the actual selling price was $271 per phone. What was the corresponding price elasticity of demand? Use your formula for E to determine the selling price that would’ve resulted in the largest annual revenue. What, nearest to the nearest 10 million, would have been the resulting annual revenue?
Acme Specialty Products has determined that the demand function for their heated socks is given by: 5 D(p) = 135-p². a. Find E(p), the Elasticity of Demand as a function of price, p. E(p) b. Find the Elasticity of Demand when heated socks are selling at a price of $7. Give result accurate to at least 3 decimal places. E(7) = c. At this price ($7): We would say the demand for heated socks is: Select an answer Based on this, in order to increase revenue we should: [Select an answer d. Use the Elasticity model to determine the price that maximizes revenue. (Round result to 2 decimal places.) P =
The demand for Widgets (QX) is a function of the price of widgets (PX), the price of woozles (PY), and per capita income (1): QX = 1950 - 10 PX + 5 PY-0.11 Currently, PX = 25, PY = 10, and 1 = 15,000. (a) Calculate the elasticity of demand for widgets with respect to its own I price, the price of woozles, and income. (b) Over what range of prices is the demand for widgets elastic? (c) If the cost per widget is 10 and the manufacturer behaves as a monopolist, how many widgets will be sold and at what price: (d) By how much must the price of widgets change if there is a 1% decrease in per capita income and the goal is to keep QX constant.

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS