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? A. Since the demand is elastic, an increase in price will decrease the total revenue. B. Since the demand is elastic, an increase in price will increase the total revenue. C. Since the demand is inelastic, an increase in price will decrease the total revenue. D. Since the demand is unitary, there will be no change in the revenue with a price increase. E. 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? A. Since the demand is elastic, an increase in price will decrease the total revenue. B. Since the demand is elastic, an increase in price will increase the total revenue. C. Since the demand is inelastic, an increase in price will decrease the total revenue. D. Since the demand is unitary, there will be no change in the revenue with a price increase. E. 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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