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Asked Feb 28, 2020
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25. Elasticity of Demand
Question
Suppose that the price p of a product and its demand x are related through the price-
demand equation
x+400p = 8, 000.
It can be shown that the elasticity of demand is elastic for
10 <p < 20.
What is the interpretation of this result?
Select the correct answer below:
O For any price that is less than 10 or greater than 20, an increase in price will
result in a decrease in revenue.
O For any price between 10 and 20, an increase in price will result in an
increase in revenue.
MacBook Pro
F6
F7
FB
F9
F10
F11
F12
9-
8.
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25. Elasticity of Demand Question Suppose that the price p of a product and its demand x are related through the price- demand equation x+400p = 8, 000. It can be shown that the elasticity of demand is elastic for 10 <p < 20. What is the interpretation of this result? Select the correct answer below: O For any price that is less than 10 or greater than 20, an increase in price will result in a decrease in revenue. O For any price between 10 and 20, an increase in price will result in an increase in revenue. MacBook Pro F6 F7 FB F9 F10 F11 F12 9- 8.

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25. Elasticity of Demand
UAICLL LIIE CUITELL aliSvVEI UCIUW.
O For any price that is less than 10 or greater than 20, an increase in price will
result in a decrease in revenue.
O For any price between 10 and 20, an increase in price will result in an
increase in revenue.
O For any price between 10 and 20, an increase in price will result in a decrease
in revenue.
O None of the above
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25. Elasticity of Demand UAICLL LIIE CUITELL aliSvVEI UCIUW. O For any price that is less than 10 or greater than 20, an increase in price will result in a decrease in revenue. O For any price between 10 and 20, an increase in price will result in an increase in revenue. O For any price between 10 and 20, an increase in price will result in a decrease in revenue. O None of the above

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Expert Answer

Step 1

Third option is the correct option.

Consider given price demand equation and the condition for the elasticity of the demand.

Calculus homework question answer, step 1, image 1

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