6 exercise 5 the demand function for drangles is q p

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Exercise 5 The demand function for drangles is q ( p ) = ( p + 1) - 2 . (1) What is the price elasticity of demand at price p ? (2) At what price is the price elasticity of demand for drangles equal to -1? (3) Write an expression for total revenue from the sale of drangles as a function of their price. Use calculus to find the revenue-maximizing price. Check the second- order condition. (4) Suppose that the demand function for drangles takes the more general form q ( p ) = ( p + a ) - b where a > 0 and b > 1. Calculate an expression for the price elasticity of demand at price p . At what price is the price elasticity of demand equal to -1? Answer:
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