This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
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 ....
View
Full
Document
 Spring '09
 Math, Calculus

Click to edit the document details