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=55.9-0.023p

A. Find the elasticity when the price is $166.93

B.  Is the demand for airfare elastic or inelastic at this​ price?

C. Find the price that maximizes revenue.

Homework Answers

Answer #1

If you happy this answer than plz give me positive rating

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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​...
A doughnut shop determines the demand function q=D(p)= 300/(p+3)^5 for a dozen doughnuts where q is...
A doughnut shop determines the demand function q=D(p)= 300/(p+3)^5 for a dozen doughnuts where q is the number of dozen doughnuts sold per day when the price is p dollars per dozen. A.) Find the elasticity equation. B.) Calculate the elasticity at a price of $9. Determine if the demand elastic, inelastic, or unit elastic? C.) At $9 per dozen, will a small increase in price cause the total revenue to increase or decrease?
Demand in the market for some good is given by the following equation: P=4 Suppose Q=5...
Demand in the market for some good is given by the following equation: P=4 Suppose Q=5 Price elasticity of demand in this market is: A) relatively inelastic B) perfectly inelastic C) relatively elastic D) perfectly elastic
A bakery works out a demand function for its chocolate chip cookies and finds it to...
A bakery works out a demand function for its chocolate chip cookies and finds it to be q=D(x)=832−20x​, where q is the quantity of cookies sold when the price per​ cookie, in​ cents, is x. Use this information to answer parts ​a) through f). A) Find the elasticity B) At what price is the elasticity of demand equal to​ 1? C) At what prices is the elasticity of demand​ elastic? D) At what prices is the elasticity of demand​ inelastic? ...
Suppose the cost of producing q unit is c(q)=500-4q+q2 and the demand function is given by...
Suppose the cost of producing q unit is c(q)=500-4q+q2 and the demand function is given by p=14-2q A) Develop the total revenue, total cost (if not given), and profit functions. Explain these functions in few sentences. B) Compute the point elasticity of demand. C) Find the intervals where the demand is inelastic, elastic, and the price for which the demand is unit elastic. D) Find the quantity that maximizes the total revenue and the corresponding price. Interpret your result. E)...
(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...
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...
For the demand curve Q=50−P, what is the own-price elasticity of demand when P=16 2/3 (that...
For the demand curve Q=50−P, what is the own-price elasticity of demand when P=16 2/3 (that is, 50/3)? Is demand elastic, inelastic, or unit elastic at that point? a) -0.5, inelastic b) -1, unit elastic c) -0.5, elastic d) 33.3, inelastic e) 33.3, elastic
The demand curve for a product is given Qdx = 1500 − 5Px − 0.2Pz by...
The demand curve for a product is given Qdx = 1500 − 5Px − 0.2Pz by where Pz = $300. a. What is the own price elasticity of demand when Px = $200? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price below $200? b. What is the own price elasticity of demand when Px = $125? Is demand elastic or inelastic at this price? What would...
Suppose the demand equation for a certain product is given by ?(?) = √(−2? + 300),...
Suppose the demand equation for a certain product is given by ?(?) = √(−2? + 300), where ? is the price ($) and ?(?) is the number of units demanded at that price. a. Find the equation for the elasticity equation. Use it to determine the elasticity of demand for a price of $50 and $100. Describe in words what these mean and tell if the demand is elastic, inelastic, or has unit elasticity. Tell for each what you would...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT