00:04
Now, here in this question, we have an electronic store, right, which can sell q equals 10 ,000 over p minus 50, minus 30 cellular funds at the price p per firm.
00:22
The current price, p is actually 150, right? you ask you to, you ask if the demand is elastic or inelastic at this price, right? so to do that, you need to calculate dq for d.
00:34
And to see whether it's big or not, right? you do the calculation, the constant does not contribute, right? so the derivative of the first term is given by 10 ,000 multiplied by p minus 50 squared and 1, and you have to take a minus sign, right? so that would be the derivative, and of course you plug p equals 150, right? what do you get? if you plug in 150, you'll find this actually be given by minus 1, right? and usually this is, that means if you change the price by $1, and then your demand will decrease by a little bit, right? so i would think that this change is actually quite small, right? i would think that this is a small change.
01:27
So it's inelastic, right? so i would say inelastic, inelastic, right? so that would be the answer.
01:40
If the price is lowered slightly, where revenue increase or decrease.
01:43
If you lower the price, if you lower the price, actually, you can see that because the derivative is negative, right? so if you lower the price, actually, your demand will actually, your demand, the demand actually will actually increase...