In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function pq = 12 at p = 2. (b) How will a price increase affect total revenue? C Since the demand is inelastic, an increase in price will increase the total revenue. Since the demand is inelastic, an increase in price will decrease the total revenue. Since the demand is unitary, there will be no change in the revenue with a price increase. Since the demand is elastic, an increase in price will increase the total revenue. Since the demand is elastic, an increase in price will decrease the total revenue. O O O O O

Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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Find the elasticity of the demand function
pq = 12
at
p = 2.
 
In this problem, p is in dollars and q is the number of units.
(a) Find the elasticity of the demand function pq = 12 at p = 2.
(b) How will a price increase affect total revenue?
C Since the demand is inelastic, an increase in price will increase the total revenue.
Since the demand is inelastic, an increase in price will decrease the total revenue.
Since the demand is unitary, there will be no change in the revenue with a price increase.
Since the demand is elastic, an increase in price will increase the total revenue.
Since the demand is elastic, an increase in price will decrease the total revenue.
O O O O O
Transcribed Image Text:In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function pq = 12 at p = 2. (b) How will a price increase affect total revenue? C Since the demand is inelastic, an increase in price will increase the total revenue. Since the demand is inelastic, an increase in price will decrease the total revenue. Since the demand is unitary, there will be no change in the revenue with a price increase. Since the demand is elastic, an increase in price will increase the total revenue. Since the demand is elastic, an increase in price will decrease the total revenue. O O O O O
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