In this problem, p is in dollars and q is the number of units. Suppose that the demand for a product is given by (p + 7) q + 6 = 1120. (a) Find the elasticity when p = $33. (Round your answer to two decimal places.) (b) Tell what type of elasticity this is. Demand is elastic.Demand is inelastic. Demand is unitary. (c) How would a price increase affect revenue? An increase in price increases revenue. An increase in price decreases revenue. Revenue is unaffected by price.
In this problem, p is in dollars and q is the number of units. Suppose that the demand for a product is given by (p + 7) q + 6 = 1120. (a) Find the elasticity when p = $33. (Round your answer to two decimal places.) (b) Tell what type of elasticity this is. Demand is elastic.Demand is inelastic. Demand is unitary. (c) How would a price increase affect revenue? An increase in price increases revenue. An increase in price decreases revenue. Revenue is unaffected by price.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 10SQ: Along a segment of the demand curve where the price elasticity of demand is less than 1, a decrease...
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In this problem, p is in dollars and q is the number of units.
Suppose that the demand for a product is given by
(p + 7)
= 1120.
q + 6 |
(a) Find the elasticity when
(b) Tell what type of elasticity this is.
(c) How would a price increase affect revenue?
p = $33.
(Round your answer to two decimal places.)(b) Tell what type of elasticity this is.
Demand is elastic.Demand is inelastic.
Demand is unitary.
(c) How would a price increase affect revenue?
An increase in price increases revenue.
An increase in price decreases revenue.
Revenue is unaffected by price.
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