Question
A study of the demand for air travel between two cities depends on the airfare according...
A study of the demand for air travel between two cities depends on the airfare according to the following demand equation.
q=55.5−0.022p
a. Find the elasticity when the price is $166.11.
E=? (Round to the nearest thousandth as needed.)
b.Is the demand for airfare elastic or inelastic at this price?
The demand for airfare at $166.11 is inelastic/elastic
c. Find the price that maximizes revenue.
Revenue will be maximized when the price is _$? (Round to the nearest dollar as needed.)
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