Elasticity of Demand The demand equation for a certain product is x = 100 – 0.01p^2. (a) Is the demand elastic, unitary, or inelastic when p = 33? elastic unitary inelastic (b) If the price is $33, will raising the price slightly cause the revenue to increase or decrease? increase decrease
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Given demand equation: \(x = 100 - 0.01p^2\) Calculate the derivative of x with respect to p: \(\frac{dx}{dp} = -0.02p\) Now, plug in the values: \(E_p = 0.02 \times 33 / (100 - 0.01 \times 33^2)\) ** Show more…
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