1) A fried chicken franchise finds the demand equation for its new roast chicken
product, \"Roasted Rooster\", is given by $q = 300 - 0.2p^2$.
a) Compute the price elasticity of demand when price, $p = \$10$.
b) Is demand elastic or inelastic when price, $p = \$10?
c) At what price is revenue maximum?
d) What is the maximum revenue?
2) Compute the price elasticity of demand based on the following data from Delta Farms. Is
demand elastic or inelastic? As the CEO, would you raise the price by $2? Explain.
Quantity
Price
demanded
20 240
22 160