Currently, 1800 people ride a certain commuter train each day and pay $4 for a ticket. The number of people q willing to ride the train at price p is q = 600(5 - 1p). The railroad would like to increase its revenue. (a) Is demand elastic or inelastic at p = 4? (b) Should the price of a ticket be raised or lowered?

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.6: Exponential And Logarithmic Equations
Problem 68E
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Currently, 1800 people ride a certain commuter train each day and pay $4 for a ticket. The number of people q willing to ride the train at price p is q = 600(5 - 1p). The railroad would like to increase its revenue. (a) Is demand elastic or inelastic at p = 4? (b) Should the price of a ticket be raised or lowered?

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