Question

Suppose the weekly demand at Bae's Jewelry Store is given by the radical function

q(p) =

The square root of ->

175 − 3p

(a) Find the elasticity of demand

η when the store sells its necklaces at p = 50. Round your answer to two decimal places.

(a) η =

Suppose the store decides to increase the prices to $60 during the week of Valentine's Day. Round the following answers to one decimal place.
(b) The percent change in the price is an increase of  ____ %
(c) The percent change in the demand is a decrease of ____%
(d) The percent change in the revenue is ____ %

(If it is an increase then your answer should be positive, and if it is a decrease then your answer should be negative. If demand is unit-elastic then the revenue will not change.)

Answer 1