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Unformatted text preview: Example 3: If E ( p ) = 2 . 5 and price is decreased by 2%, what happens to demand? Does the revenue increase or decrease? 13 c ± Kendra Kilmer February 27, 2009 Example 4: Given that x = f ( p ) = 1875p 2 , determine whether demand is elastic, inelastic, or has unit elasticity at the indicated values of p . a) p = 15 b) p = 25 c) p = 40 Example 5: The pricedemand equation for homedelivered 12inch pizzas is p = 16 . 8. 002 x where x is the number of pizzas delivered weekly. The current price of one pizza is $8. In order to generate additional revenue from the sale of 12inch pizzas, would you recommend a price increase or a price decrease? Section 4.7 Homework Problems: 1321(odd),25,29,41,43,45 and supplemental problems 14...
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 Fall '08
 Drost
 Microeconomics, Supply And Demand, Kendra Kilmer

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