In this problem, p is in dollars and q is the number of units. Suppose that the demand for a product is given by pq + p + 100q = 50,000. (a) Find the elasticity when p = $200. (Round your answer to two decimal places.) (b) Tell what type of elasticity this is. Demand is elastic.Demand is inelastic. Demand is unitary elastic. (c) How would a price increase affect revenue? An increase in price will result in an increase in total revenue. An increase in price will result in a decrease in total 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 pq + p + 100q = 50,000. (a) Find the elasticity when p = $200. (Round your answer to two decimal places.) (b) Tell what type of elasticity this is. Demand is elastic.Demand is inelastic. Demand is unitary elastic. (c) How would a price increase affect revenue? An increase in price will result in an increase in total revenue. An increase in price will result in a decrease in total revenue. Revenue is unaffected by price.
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section: Chapter Questions
Problem 18T
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In this problem, p is in dollars and q is the number of units.
Suppose that the demand for a product is given by
pq + p + 100q = 50,000.
(a) Find the elasticity when
(b) Tell what type of elasticity this is.
(c) How would a price increase affect revenue?
p = $200.
(Round your answer to two decimal places.)(b) Tell what type of elasticity this is.
Demand is elastic.Demand is inelastic.
Demand is unitary elastic.
(c) How would a price increase affect revenue?
An increase in price will result in an increase in total revenue.
An increase in price will result in a decrease in total revenue.
Revenue is unaffected by price.
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