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The demand for a particular commodity when sold at a price of p dollars is given...

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 unit. For what value of p is revenue maximized?

Math   Calculus   
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