(a) Is the demand elastic or inelastic when p = 7? elastic inelastic Is the dema
ID: 2846466 • Letter: #
Question
(a) Is the demand elastic or inelastic when p = 7? elastic inelastic Is the demand elastic or inelastic when p = 11? elastic inelastic(b) When is the demand unitary? (Round your answer to two decimal places.) (Hint: Solve E(p) = 1 for p.)
p = 3
(c) If the unit price is lowered slightly from $11, will the revenue increase or decrease? increase decrease (d) If the unit price is increased slightly from $7, will the revenue increase or decrease? increase decrease elastic inelastic elastic inelastic increase decrease increase decrease The demand equation for the Roland portable hair dryer is given as follows where x (measured in units of a hundred) is the quantity demanded per week and p is the unit price in dollars. x = 1/3(256 -p2) (0 le p le 15) Is the demand elastic or inelastic when p = 7? Is the demand elastic or inelastic when p = 11? When is the demand unitary? (Round your answer to two decimal places.) (Hint: Solve E(p) = 1 for p.) p = If the unit price is lowered slightly from $11, will the revenue increase or decrease? If the unit price is increased slightly from $7, will the revenue increase or decrease?
Explanation / Answer
Calculating elascity E(p) = (-p) * f'(p) / f(p)
f'(p) = -(2/3) *p
E(p) = 2*p^2/ (256-p^2)
a) E(7) = 98/ 207 <1 Demand is inelastic when P= 7
b) E( 11) = 242/135 >1 Demand is elastic when P = 11
C) Demand is unitary when E(p) = 1
256-P^2 = 2*p^2
P = 9.23
(d) Since the demand is inelastic when the unit price is $7, lowering the unit price will cause the revenue to decrease.
(e) Since the demand is elastic when the unit price is $11, lowering the unit price will cause the revenue to increase.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.