The demand function for a Christmas music CD is given by q = 0.4(415 – p) where q (measured in units of á hundred) is the quantity demanded per week and p is the unit price in dollars. (a) Evaluate the elasticity at 20. E(20) (b) Should the unit price be lowered slightly from 20 in order to increase revenue? ? (c) When is the demand unitary? p = dollars (d) Find the maximum revenue. Maximum revenue = hundreds of dollars

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Chapter2: Second-order Linear Odes
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The demand function for a Christmas music CD is given by
q = 0.4(415 – p³)
where q (measured in units of á hundred) is the quantity demanded per week and p is the unit price in dollars.
(a) Evaluate the elasticity at 20. E(20) =
(b) Should the unit price be lowered slightly from 20 in order to increase revenue? ?
(c) When is the demand unitary? p =
dollars
(d) Find the maximum revenue. Maximum revenue =
hundreds of dollars
Transcribed Image Text:The demand function for a Christmas music CD is given by q = 0.4(415 – p³) where q (measured in units of á hundred) is the quantity demanded per week and p is the unit price in dollars. (a) Evaluate the elasticity at 20. E(20) = (b) Should the unit price be lowered slightly from 20 in order to increase revenue? ? (c) When is the demand unitary? p = dollars (d) Find the maximum revenue. Maximum revenue = hundreds of dollars
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