The quantity demanded each week x (in units of a hundred) of the Mikado digital camera is related to the unit price p (in dollars) by the demand equation x = V400 - 5p (0 sps 80). (a) Is the demand elastic or inelastic when p = 40? O elastic O inelastic When p = 70? O elastic O inelastic (b) When is the demand unitary? p = (c) If the unit price is lowered slightly from $70, will the revenue increase or decrease? O increase O decrease (d) If the unit price is increased slightly from $40, will the revenue increase or decrease? O increase O decrease
The quantity demanded each week x (in units of a hundred) of the Mikado digital camera is related to the unit price p (in dollars) by the demand equation x = V400 - 5p (0 sps 80). (a) Is the demand elastic or inelastic when p = 40? O elastic O inelastic When p = 70? O elastic O inelastic (b) When is the demand unitary? p = (c) If the unit price is lowered slightly from $70, will the revenue increase or decrease? O increase O decrease (d) If the unit price is increased slightly from $40, will the revenue increase or decrease? O increase O decrease
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
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 6E
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