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Unformatted text preview: Multiply by 180 2 p . Add 2 p to both sides. Divide both sides by 3. So, p = 60 is the point at which E ( p ) changes from elastic to inelastic, or visa versa. Through simple inspection, which we could have done in the first place, we can determine whether the value of the function E ( p ) is greater than 1 (elastic) or less than 1 (inelastic) at p = 65. So, demand is elastic at p = 65. (b) Since demand is elastic when p = 65, this means that for revenue to increase, price should decrease ....
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