The weekly demand for Pulsar DVRs is given by the demand equation p = -0.02x + 300 (0≤x≤15,000), where p denotes the wholesale unit price in dollars and x denotes the quantity demanded. Consider the graph of Pulsar's revenue function as a function of price, p. Mark where on the revenue model demand is inelastic, unitary, and elastic. What happens to revenue when demand is unitary? 4200000 Revence (dolars) 00000 600000 00000 200000 unit price

The weekly demand for Pulsar DVRs is given by the demand equation p = -0.02x + 300 (0≤x≤15,000), where p denotes the wholesale unit price in dollars and x denotes the quantity demanded. Consider the graph of Pulsar's revenue function as a function of price, p. Mark where on the revenue model demand is inelastic, unitary, and elastic. What happens to revenue when demand is unitary? 4200000 Revence (dolars) 00000 600000 00000 200000 unit price

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The weekly demand for Pulsar DVRS is given by the
demand equation p = -0.02x + 300 (0≤x≤15,000),
where p denotes the wholesale unit price in dollars and x
denotes the quantity demanded.
Consider the graph of Pulsar's revenue function as a function of price,
p. Mark where on the revenue model demand is inelastic, unitary,
and elastic. What happens to revenue when demand is unitary?
Revence (dollars)
1200000
+000000
soo
600000
400000
200000
100
150
200
unit price

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Step 1: Describe the importance of elasticities

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Step 3: Explain what happens to revenue when demand is unitary

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