In this problem, p is in dollars and q is the number of units. Suppose that the demand for a product is given by (p + 1)/g + 9 = 810. (a) Find the elasticity when p = $29. (Round your answer to two decimal places.) (b) Tell what type of elasticity this is. Demand is elastic. Demand is inelastic. Demand is unitary. (c) How would a price increase affect revenue? An increase in price increases revenue. An increase in price decreases revenue. Revenue is unaffected by price.
In this problem, p is in dollars and q is the number of units. Suppose that the demand for a product is given by (p + 1)/g + 9 = 810. (a) Find the elasticity when p = $29. (Round your answer to two decimal places.) (b) Tell what type of elasticity this is. Demand is elastic. Demand is inelastic. Demand is unitary. (c) How would a price increase affect revenue? An increase in price increases revenue. An increase in price decreases revenue. Revenue is unaffected by price.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter14: Pricing Techniques And Analysis
Section: Chapter Questions
Problem 2E: The price elasticity of demand for air travel differs radically from first-class (1.3) to...
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In this problem, p is in dollars and q is the number of units.
Suppose that the
(p + 1)
= 810.
| q + 9 |
Transcribed Image Text:In this problem, p is in dollars and q is the number of units.
Suppose that the demand for a product is given by (p + 1)/g + 9 = 810.
(a) Find the elasticity when p =
$29. (Round your answer to two decimal places.)
(b) Tell what type of elasticity this is.
Demand is elastic.
Demand is inelastic.
Demand is unitary.
(c) How would a price increase affect revenue?
An increase in price increases revenue.
An increase in price decreases revenue.
Revenue is unaffected by price.
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