Question

For the demand function

q equals Upper D left parenthesis x right parenthesis equals StartFraction 400 Over x EndFractionq=D(x)=400x​,

find the following.

​a) The elasticity

​b) The elasticity at

xequals=77​,

stating whether the demand is​ elastic, inelastic, or has unit elasticity

​c) The​ value(s) of x for which total revenue is a maximum​ (assume that x is in​ dollars)

Answer 1

we have

the elasticity of the demand is,

..............a)

put x = 77

.............b)

here E > 1,

the demand is inelastic. ..............c)

E = 1 for the maximum revenue,

.............d)