Consid0 0 er the deman equation x + 1/3p=20 0 is the < or equal to p < or equal

Question

Consid0 0 er the deman equation x + 1/3p=20 0 is the < or equal to p < or equal to 60, where x = # of units, p is the unit price in $.

a) find the elasticity of demand function. Use it to determine if at a price of $20, the demand is elastic, unitary, or elastic. If the price was increased slightly from $20, would the revenue increase or decrease.

b) Find the revenue as a function of p: R(p)

c) Determine the intervals where the revenue is increasing and the intervals where it is decreasing. Show your sign graph to justify your answer.

d) At what price will the Revenue be a maximum?

e) What is the maximum Revenue?

f) What is the marginal revenue function? Also, find the marginal revenue when the price is $15. Interpret your answer.

I would like the work to be shown so I can understand it. Thank you for your help.

Explanation / Answer

x + 1/3p=20 At p = 20 x= 40/3

1)E = (dx/dp)*(x/q) = -1/3 * (40/3 )/20 = -40/180 = -2/9

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.