Question

For the demand function q = D(p) = 320 - p, find the following. a) The elasticity b) The elasticity at p = 104, stating whether the demand is elastic, inelastic or has unit elasticity c) The value(s) of p for which total revenue is a maximum (assume that p is in dollars)

          For the demand function q = D(p) = 320 - p, find the following.
a) The elasticity
b) The elasticity at p = 104, stating whether the demand is elastic, inelastic or has unit elasticity
c) The value(s) of p for which total revenue is a maximum (assume that p is in dollars)

For the demand function q = D(p) = 320 - p, find the following.
a) The elasticity
b) The elasticity at p = 104, stating whether the demand is elastic, inelastic or has unit elasticity
c) The value(s) of p for which total revenue is a maximum (assume that p is in dollars)

Added by -Ngeles C.

Calculus: Early Transcendentals

James Stewart 8th Edition

Instant Answer

Solved by Expert Eduard Sanchez

07/18/2023

Step 1

Taking the derivative of the demand function, we get: dQ/dP = -320 Plugging this into the elasticity formula, we get: E = (-320) * (P/Q) Since Q = 320 - P, we can substitute this into the formula to get: E = (-320) * (P/(320-P)) Simplifying this expression, Show more…

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For the demand function q = D(p) = 320 - p, find the following: a) The elasticity b) The elasticity at p = 104, stating whether the demand is elastic, inelastic or has unit elasticity c) The value(s) of p for which total revenue is a maximum (assume that p is in dollars)