Question

The demand function for a certain commodity at a sales price of p dollars follows the...

The demand function for a certain commodity at a sales price of p dollars follows the function:
d(p)=22000e^-0.5p -1
a) Determine the sales price at which there will be no demand for this commodity.
Construct the elasticity of demand function for this commodity. Calculate and interpret
the elasticity at a sales price of $2.
Determine the maximum revenue generated by sales of this commodity.

Math   Calculus   
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Answer #1

The demand is unit elastic

The revenue is maximized at p = $2

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