Question

(a) Find the elasticity of the demand function

p^{2} + 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 in price will increase the total revenue.

Since the demand is inelastic, an increase in price will decrease the total revenue.

Answer #1

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?

Suppose demand function in Europe is Q EU e= 30 - 3/2P, while
the Japan demand function is Q JP = 20 -1/2P. Let the price be $8
in both markets. Find and compare price elasticity of demand for
each market. What is the effect of a price increase on revenues in
the Europe and Japan?

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

1. When elasticity of demand is equal to one and the change in
the quantity demanded and the change in price are exactly
proportional. This type of elasticity is described as ________.
A. elastic
B. inelastic
C. unitary elastic
2. What happens to total revenue (TR) if the price rises on a
product with demand that is price elastic?
A. Total revenue will rise.
B. Total revenue will remain the same.
C. Total revenue will fall.

1.A demand function given by: Q = 240 ‒ 3P. What is the price
elasticity of demand when the price is P = $10? You will have to
use the point elasticity formula. The price elasticity of demand at
this price is ___________
2.Consider the same demand equation, Q = 240 ‒ 3P. If a firm
sells at the unit elastic price on this demand curve, what is the
total revenue it will receive? The total revenue received at this...

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...

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...

Suppose the cost of producing q unit is
c(q)=500-4q+q2 and the
demand function is given by p=14-2q
A) Develop the total revenue, total cost (if not given), and
profit functions. Explain these functions in few sentences.
B) Compute the point elasticity of demand.
C) Find the intervals where the demand is inelastic, elastic,
and the price for which the demand is unit elastic.
D) Find the quantity that maximizes the total revenue and the
corresponding price. Interpret your result.
E)...

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 demand function for a certain product is p = 3000, where q
is the quantity of the product produced and q sold while p is the
unit price when q units are produced.
Find the point elasticity of demand when q = 300.
Is the demand elastic, inelastic, or unit elastic when q =
300?

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