12th Edition

ISBN: 9780137590810

Author: Larry J. Goldstein, David C. Lay, David I. Schneider, Nakhle H. Asmar, William Edward Tavernetti

Publisher: PEARSON

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Textbook Question

Chapter 5.3, Problem 19E

Elasticity of Demand Currently 1800 people ride a certain commuter train each day and pay $ 4 for a ticket. The number of people q willing to ride the train at price p is q = 600 ( 5 − p ) . The railroad would like to increase its revenue.

a. Is demand elastic or inelastic at p = 4 ?

b. Should the price of a ticket be raised or lowered?

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Chapter 5.3, Problem 18E

Chapter 5.3, Problem 20E

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Chapter 5 Solutions

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