Question

(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 in price will increase the total revenue.

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

Math   Calculus   
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Answer #1

(b) Since the demand is elastic, any increase in price would lead to a decrease in demand quantity and thus cause a decrease in revenue.

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