(a) Explanation Given information: The demand equation for certain product is p = 9 1000 − x 3 . Definition used: 1. Let f is a demand function defined as x = f ( p ) and the function f is differentiable, then the elasticity of demand at price p is defined as, E ( p ) = − p f ′ ( p ) f ( p ) (1) 2. The demand is said to be elastic if E ( p ) > 1 , the demand is said to be unitary if E ( p ) = 1 and the demand is said to be inelastic if E ( p ) < 1 . Calculation: The given expression is, p = 9 1000 − x 3 Write the above equation as a function of p , the expression becomes, p 9 = 100 − x 3 ( Divide both sides by 9 ) ( p 9 ) 3 = 100 − x ( Raise the power 3 both sides ) x = 100 − ( p 9 ) 3 ( Add − 100 both sides ) So, the function f ( p ) becomes, f ( p ) = 100 − ( p 9 ) 3 Differentiate the above function to evaluate f ′ ( p ) (b) To determine Whether the revenue is increased or decreased on increasing the price slightly.

Applied Calculus for the Managerial, Life, and Social Sciences (MindTap Course List)

10th Edition

ISBN: 9781305657861

Author: Soo T. Tan

Publisher: Cengage Learning

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Chapter 3, Problem 72RE

(a)

To determine

Whether the demand is elastic, unitary or inelastic for p=60 .

(b)

To determine

Whether the revenue is increased or decreased on increasing the price slightly.

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Chapter 3, Problem 71RE

Chapter 3, Problem 73RE

Chapter 3 Solutions

Applied Calculus for the Managerial, Life, and Social Sciences (MindTap Course List)

Ch. 3.1 - State the following rules of differentiation in...Ch. 3.1 - Prob. 2CQ Ch. 3.1 - Prob. 3CQ Ch. 3.1 - Prob. 4CQ Ch. 3.1 - Prob. 1E Ch. 3.1 - Prob. 2E Ch. 3.1 - Prob. 3E Ch. 3.1 - Prob. 4E Ch. 3.1 - Prob. 5E Ch. 3.1 - Prob. 6E

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Volume of a Cylinder The volume of a...Ch. 3.6 - Prob. 40E Ch. 3.6 - Prob. 41E Ch. 3.6 - Prob. 42E Ch. 3.6 - Prob. 43E Ch. 3.6 - Prob. 44E Ch. 3.6 - Prob. 45E Ch. 3.6 - Prob. 46E Ch. 3.6 - Prob. 47E Ch. 3.6 - PRODUCTION FUNCTION FOR A FURNITURE COMPANY The...Ch. 3.6 - Prob. 49E Ch. 3.6 - Prob. 50E Ch. 3.6 - Prob. 51E Ch. 3.6 - Prob. 52E Ch. 3.6 - Prob. 53E Ch. 3.6 - Prob. 54E Ch. 3.6 - Prob. 55E Ch. 3.6 - Prob. 56E Ch. 3.6 - Prob. 57E Ch. 3.6 - Prob. 58E Ch. 3.6 - Prob. 59E Ch. 3.6 - Prob. 60E Ch. 3.6 - Prob. 61E Ch. 3.6 - Prob. 62E Ch. 3.6 - Prob. 63E Ch. 3.6 - Prob. 64E Ch. 3.6 - Prob. 65E Ch. 3.6 - 66. 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Grazing Kangaroos The amount of vegetation eaten in a day by a grazing animal V of food available measured as biomass, in units such as pounds per acre. This relationship is called the functional response. If there is little vegetation available, the daily intake will be small, since the animal will have difficulty finding and eating the food. As the amount of food biomass increases, so does the daily intake. Clearly, though, there is a limit to the amount the animal will eat, regardless of the amount of food available. This maximum amount eaten is the satiation level. a.For the western grey kangaroo of Australia, the functional response is G=2.54.8e0.004V, where G=G(V) is the daily intake measured in pounds and V is the vegetation biomass measured in pounds per acre. i. Draw a graph of G against V. Include vegetation biomass levels up to 2000 pounds per acre. ii. Is the graph you found in part i concave up or concave down? Explain in practical terms what your answer means about how this kangaroo feeds. iii. There is a minimal vegetation biomass level below which the western grey kangaroo will eat nothing. Another way of expressing this is to say that the animal cannot reduce the food biomass below this level. Find this minimal level. iv. Find the satiation level for the western grey kangaroo. b. For the red kangaroo of Australia, the functional response is R=1.91.9e0.033V, Where R is the daily intake measured in pounds and V is the vegetation biomass measured in pounds per acre. i. Add the graph of R against V to the graph of G you drew in part a. ii. A simple measure of the grazing efficiency of an animal involves the minimal vegetation biomass level described above: The lower the minimal level for an animal, the more efficient it is at grazing. Which is more efficient at grazing, the western grey kangaroo or the red kangaroo?

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Whether the demand is elastic, unitary or inelastic for p = 60 .

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Whether the demand is elastic, unitary or inelastic for p=60 .

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