Show that if demand is elastic (say, E = -2), marginal revenue is positive but less than price. Show that if demand is unitary elastic (E = -1), marginal revenue is zero. Finally,. show that if demand is inelastic (say, E = -0.5), marginal revenue is negative.
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- Let a demand function be given x=3*(p-55)^2 (a) Find the Revenue when the price per item is 25 dollars (b) Find the elasticity when the price per item is 25 dollars (c) If a price increase of 3 percent is necessary, find the new revenue bartlebyThe inverse demand function is p=50−0.5Q, what is the price elasticity of demand and revenue at Q=80?Assume that a firm’s marginal cost is $10 and the elasticity of demand is -2. We can conclude that the firm’s profit maximizing price is approximately?
- Reid has determined that the daily demand for doughnuts at his favorite bakery is described by the following equation: Qd = 3,300 - 3000P where Qd is the daily quantity demanded in number of doughnuts and P is the price per doughnuts in dollars. a. What is the point price elasticity of demand at a price of $0.70? b. Assume the price is currently $0.70. What is the marginal revenue obtained by selling one additional doughnut? c. The marginal cost of producing an additional doughnut is $0.10. What price should the bakery establish in order to maximize profits?The demand curve for product a is given as Q = 2000 - 20P. a. How many units will be sold at $10? b. At what price would 2,000 units be sold? 0 units? 1,500? c. Write equations for total revenue and marginal revenue (in terms of Q). d. What will be the total revenue at a price of $70? What will be the marginal revenue? e. What is the point elasticity at a price of $70? f. If price were to decrease to $60, what would total revenue, marginal revenue, and point elasticity be now? g. At what price would elasticity be unitary?Total Revenue from the sale of X is given by the equation R =60Q-Q^2. Calculate the value of marginal revenue when the point price elasticity of demand when marginal revenue is -2.
- An end-of-aisle price promotion changes the price elasticity of a good from −4 to −5. Suppose the normal price is $48, which equates marginal revenue with marginal cost at the initial elasticity of –4. What should the promotional price be when the elasticity changes to –5? (Hint: In other words, what price will equate marginal revenue and marginal cost?) a. $27.00 b. $45.00 c. $36.00 d. $31.50You manage a parking garage in a small college town. The faculty elasticity of demand is -1.33 and the student elasticity is -1.5. Daily maintenance costs average $5 per parking spot in the garage. What prices would you charge faculty and students in order to maximize profits? Group of answer choices $20 per day for faculty, $15 per day for students. $15 per day for faculty, $20 per day for students. $10 per day for faculty, $5 per day for students. $13.3 per day for faculty, $15.0 per day for students.The price p (in dollars) and the quantity q sold of a certain product obey the demand Equation : q = 800 - 20p and 0 ≤ p ≤ 40 Express the revenue R as a function of q. What is the revenue if 20 units are sold? What quantity q maximizes revenue? What is the maximum revenue? What price should the company charge to maximize revenue? What price should the company charge to earn at least $3500 in revenue?