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

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
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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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?
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 =
(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 $6, will the revenue increase or decrease?
increase
decrease
Transcribed Image Text: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? 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 = (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 $6, will the revenue increase or decrease? increase decrease
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