In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function pq = 36 at p = 4. (b) How will a price increase affect total revenue? O Since the demand is elastic, an increase in price will decrease the total revenue. O Since the demand is elastic, an increase in price will increase the total revenue. Since the demand is inelastic, an increase in price will decrease the total revenue. O Since the demand is unitary, there will be no change in the revenue with a price increase. O Since the demand is inelastic, an increase in price will increase the total revenue.
In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function pq = 36 at p = 4. (b) How will a price increase affect total revenue? O Since the demand is elastic, an increase in price will decrease the total revenue. O Since the demand is elastic, an increase in price will increase the total revenue. Since the demand is inelastic, an increase in price will decrease the total revenue. O Since the demand is unitary, there will be no change in the revenue with a price increase. O Since the demand is inelastic, an increase in price will increase the total revenue.
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter2: Functions
Section2.4: Average Rate Of Change Of A Function
Problem 4.2E: bThe average rate of change of the linear function f(x)=3x+5 between any two points is ________.
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