2500-p The demand equation for a product is found to be q = 3 where p is the price of the product in dollars and q is the quantity. a. Find the price elasticity of demand when the price is $30. b. Is the demand elastic, inelastic, or unit elastic? How do you know? c. Based on your findings, should the company increase the price? Why or why not?

2500-p The demand equation for a product is found to be q = 3 where p is the price of the product in dollars and q is the quantity. a. Find the price elasticity of demand when the price is $30. b. Is the demand elastic, inelastic, or unit elastic? How do you know? c. Based on your findings, should the company increase the price? Why or why not?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 2.5P: (Determinants of Price Elasticity) Would the price elasticity of demand for electricity be more...

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