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. =(225 - p²) (0 ≤p≤15) x (a) Is the demand elastic or inelastic when p = 6? O elastic O inelastic Is the demand elastic or inelastic when p = 11? O elastic Oinelastic (b) When is the demand unitary? (Round your answer to two decimal places.) (Hint: Solve E(p) = 1 for p.) p= (c) If the unit price is lowered slightly from $11, will the revenue increase or decrease? O increase O decrease (d) If the unit price is increased slightly from $6, will the revenue increase or decrease? O increase O 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. =(225 - p²) (0 ≤p≤15) x (a) Is the demand elastic or inelastic when p = 6? O elastic O inelastic Is the demand elastic or inelastic when p = 11? O elastic Oinelastic (b) When is the demand unitary? (Round your answer to two decimal places.) (Hint: Solve E(p) = 1 for p.) p= (c) If the unit price is lowered slightly from $11, will the revenue increase or decrease? O increase O decrease (d) If the unit price is increased slightly from $6, will the revenue increase or decrease? O increase O decrease
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
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Step 1: Define the inception of elasticity
VIEWStep 2: Calculate elasticity at price of 6 and 11
VIEWStep 3: Calculate when is demand unitary
VIEWStep 4: Explain what will happen to revenues when price falls from $11
VIEWStep 5: Explain what will happen to revenues when price increases from $6
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