Revenue and elasticity. The price-demand equation for hamburgers at a fast-food restaurant is x + 400p = 3,000 Currently, the price of a hamburger is $3.00. If the price is increased by 10%, will revenue increase or decrease?

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section5.1: The Elasticity Of Demand
Problem 1QQ: Define the price elasticity of demand. Explain the relationship between total revenue and the price...
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85. Revenue and elasticity. The price-demand equation for
hamburgers at a fast-food restaurant is
x + 400p
= 3,000
Currently, the price of a hamburger is $3.00. If the
price is increased by 10%, will revenue increase or
decrease?
at
Transcribed Image Text:85. Revenue and elasticity. The price-demand equation for hamburgers at a fast-food restaurant is x + 400p = 3,000 Currently, the price of a hamburger is $3.00. If the price is increased by 10%, will revenue increase or decrease? at
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