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Unformatted text preview: 5. Suppose the price and demand of a commodity is related by p ( x ) = e-2 x . (a) Find the marginal revenue. (b) Find where marginal revenue is zero. (c) Where is marginal revenue positive? 6. The eﬀect of prices on pens was studied. It was estimated that the demand equation was x = 10 p-29 , where x is the number of pens purchased, and p is the price in dollars. (a) Find the elasticity of demand when p = 1. (b) Classify the demand as inelastic, unit elastic or elastic. (c) Find the (approximate) price of a pen that gives unit elasticity....
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