Economics: elasticity of demand. Consider the demand function given by q = D ( x ) 600 ( x + 4 ) 2 . a. Find the elasticity. b. Find the elasticity at x = 1, stating whether demand is elastic or inelastic. c. Find the elasticity at x = 12, stating whether demand is elastic or inelastic. d. At a price of $12, will a small increase in price cause total revenue to increase or decrease? e. Find the price at which total revenue is a maximum.
Economics: elasticity of demand. Consider the demand function given by q = D ( x ) 600 ( x + 4 ) 2 . a. Find the elasticity. b. Find the elasticity at x = 1, stating whether demand is elastic or inelastic. c. Find the elasticity at x = 12, stating whether demand is elastic or inelastic. d. At a price of $12, will a small increase in price cause total revenue to increase or decrease? e. Find the price at which total revenue is a maximum.
Solution Summary: The author explains how to calculate the elasticity function when the demand function is given by underset_E(x)=2.
There are three options for investing $1150. The first earns 10% compounded annually, the second earns 10% compounded quarterly, and the third earns 10% compounded continuously. Find equations that model each investment growth and
use a graphing utility to graph each model in the same viewing window over a 20-year period. Use the graph to determine which investment yields the highest return after 20 years. What are the differences in earnings among the three
investment?
STEP 1: The formula for compound interest is
A =
nt
= P(1 + − − ) n²,
where n is the number of compoundings per year, t is the number of years, r is the interest rate, P is the principal, and A is the amount (balance) after t years. For continuous compounding, the formula reduces to
A = Pert
Find r and n for each model, and use these values to write A in terms of t for each case.
Annual Model
r=0.10
A = Y(t) = 1150 (1.10)*
n = 1
Quarterly Model
r = 0.10
n = 4
A = Q(t) = 1150(1.025) 4t
Continuous Model
r=0.10
A = C(t) =…
Use a graphing utility to find the point of intersection, if any, of the graphs of the functions. Round your result to three decimal places. (Enter NONE in any unused answer blanks.)
y = 100e0.01x
(x, y) =
y = 11,250
×
5. For the function y-x³-3x²-1, use
derivatives to:
(a) determine the intervals of increase and
decrease.
(b) determine the local (relative) maxima and
minima.
(e) determine the intervals of concavity.
(d) determine the points of inflection.
(e) sketch the graph with the above information
indicated on the graph.
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