Question

Given the price – demand equation P + 0.01x = 50 Express the demand x as...

Given the price – demand equation

P + 0.01x = 50

  1. Express the demand x as a function of the price p
  2. Find the elasticity of demand E(p)
  3. What Is the elasticity of demand where p = $10? If this price is decreased by 5%, what is the approximate change in demand? Will the revenue increase or decrease?
  4. What is the elasticity of demand when p = $45? If this price is decreased by 5%, what is the approximate change in demand? Will the revenue increase or decrease?
  5. What is the elasticity of demand when p = $24? If this price is decrease by 5% what is he approximate change in demand? Will the revenue increase or decrease?
  6. For which values of p is demand elastic? Inelastic?
  7. For which values of p is revenue increasing? Decreasing?

PS :Please be as detail as possible instead of just writing answers . Thank you !

Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
10. Given the price-demand equation: ? = ???? − ?? a) Find the elasticity of demand,...
10. Given the price-demand equation: ? = ???? − ?? a) Find the elasticity of demand, ?(?). ?(?) = _____________________________________________________________________ b) For which values of ? is the demand elastic? State solution in interval notation. Solution: _________________________________________________________________ c) What is the elasticity of demand when ? = $80? If this price is increased by 10%, what is the approximate change in demand? (State if demand increased or decreased.) Solution: _____________________________________________________________
The demand for a particular commodity when sold at a price of p dollars is given...
The demand for a particular commodity when sold at a price of p dollars is given by the function D(p) = 4000e −0.02p . (a) Find the price elasticity of demand function and determine the values of p for which the demand is elastic, inelastic, and of unitary elasticity. (b) If the price is increased by 3% from $12, what is the approximate effect on demand? (c) Find the revenue R(p) obtained by selling q units at p dollars per...
Categories of Price Elasticity of Demand For each of the following values for price elasticity of...
Categories of Price Elasticity of Demand For each of the following values for price elasticity of demand, indicate whether demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic. Also, indicate (increase, decrease, no effect) what would happen to total revenue if a firm raised the price in each elasticity range. Price Elasticity of Demand equals Descriptionn of Elasticity Total Revenue Change -2.5 -1.0 -0.8 -infinity 0
If a price-demand equation is solved for p, then price is expressed as p=g(x) and x...
If a price-demand equation is solved for p, then price is expressed as p=g(x) and x becomes the independent variable. In this case, it can be shown that the elasticity of demand is given by E(x)= -g(x)/xg'(x) . Use the given price-demand equation to find the values of x for which demand is elastic and for which demand is inelastic. p=g(x)=9000-0.1x^2
1. What is the numerical value for the price elasticity of demand if a price change...
1. What is the numerical value for the price elasticity of demand if a price change causes no change in quantity demanded?________ What is the numerical value for elasticity of demand if a price change causes no change in total revenue?________ What is the elasticity of demand for a horizontal demand curve?________ What is the elasticity of demand if a price increase leads to an increase in total revenue? elastic / inelastic. What is the numerical value for the elasticity...
(a) Find the elasticity of the demand function p2 + 2p + q = 81 at...
(a) Find the elasticity of the demand function p2 + 2p + q = 81 at p = 8. (b) How will a price increase affect total revenue? Since the demand is elastic, an increase in price will decrease the total revenue. Since the demand is unitary, there will be no change in the revenue with a price increase.     Since the demand is inelastic, an increase in price will increase the total revenue. Since the demand is elastic, an increase...
For the demand curve Q=50−P, what is the own-price elasticity of demand when P=16 2/3 (that...
For the demand curve Q=50−P, what is the own-price elasticity of demand when P=16 2/3 (that is, 50/3)? Is demand elastic, inelastic, or unit elastic at that point? a) -0.5, inelastic b) -1, unit elastic c) -0.5, elastic d) 33.3, inelastic e) 33.3, elastic
A doughnut shop determines the demand function q=D(p)= 300/(p+3)^5 for a dozen doughnuts where q is...
A doughnut shop determines the demand function q=D(p)= 300/(p+3)^5 for a dozen doughnuts where q is the number of dozen doughnuts sold per day when the price is p dollars per dozen. A.) Find the elasticity equation. B.) Calculate the elasticity at a price of $9. Determine if the demand elastic, inelastic, or unit elastic? C.) At $9 per dozen, will a small increase in price cause the total revenue to increase or decrease?
Assume that the price and the demand are both positive. Use the price-demand equation, x= f(p)=  √(1600-2p^2)...
Assume that the price and the demand are both positive. Use the price-demand equation, x= f(p)=  √(1600-2p^2) to find the values of p for which demand is elastic and the values for which demand is inelastic.
Which of the following is TRUE regarding price elasticity? a. When demand is inelastic, sellers should...
Which of the following is TRUE regarding price elasticity? a. When demand is inelastic, sellers should lower prices in order to increase total revenue. b.Price elasticity does not depend on magnitude and direction of the contemplated price change. c.The higher the elasticity, the lesser the volume growth resulting from a one-percent price reduction. d.If demand is elastic, sellers assume that lowering the price will decrease total revenue. e.Long-run and short-run price elasticity may differ, delaying the impact of a price...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT