Question: Show analytically that if elasticity of demand satisfies E > 1, then the derivative of revenue with respect to price satisfies dRdp < 0.

Show analytically that if elasticity of demand satisfies E > 1, then the derivative of revenue with respect to price satisfies dR∕dp < 0.

Step by Step Solution

★★★★★

3.38 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Since R pq we have dRdp pdqdp q We ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Applied Calculus Questions!

Q:

Use a graphing calculator to solve the given equations to the nearest 0.001. 1 x + 1 2 = 0

Q:

Show analytically that if elasticity of demand satisfies E 0.

Q:

If the demand function for q units of a product at $p per unit is given by p(q + 1)2 = 200,000 find the rate of change of quantity with respect to price when p = $80. Interpret this result.

Q:

#1 through #9: Find the derivative of each expression. Use correct notation for each derivative! Algebraic simplification of your result is not required. 1) f(x) = - 100x 1.25 - 10x -0.7 + 8250 2)...

Q:

econ j 1.2 In this problem we revisit the voting game we saw in class. Let's recall the main features of the problem. There are two candidates, each of whom chooses one of ten political positions....

Q:

a answer all 5 In the goods-and-services market actual inventories have started to rise above optimal inventories. What could have happened to autonomous money demand to bring this about? Explain and...

Q:

mmacroecon Question 1 Let an individual's utility function be given as u(x1, x2) = 2 x1 x2 . a) Compute the Marginal Rate of Substitution. b) Initially, the individual consumes bundle (x1 = 100, x2 =...

Q:

Microeconomics question... Please help me solve these questions. And make it an original work. 1) ECON10004: INTRODUCTORY MICROECONOMICS ASSIGNMENT 1: SEMESTER 1, 2018 Due: Monday, April 16, 14:00 ....

Q:

Explainthese attachments. Question 1 (total 15 points). A firm has a production function:f (K, Z) = 50LK05 + L2 K2 - 13 K3 a. What is its short-run production function if capital is fixed at K=4? b....

Q:

Help me please.,,, 1. Consider a three period small open endowment economy populated by a large number of households with preferences given by the lifetime utility function 11101 +11102 +1DC3 where...

Q:

Of the two numbers four times the smaller one is less than 3 times the larger one by 5. If the sum of the numbers is larger than 6 times their difference by 6, find the two numbers.

Q:

Comment on perceived benefits from Section 404 of the Sarbanes-Oxley Act.

Q:

What is the goal of evaluating historical performance when you are sensitizing the impact of future changes? - To determine the most important risk factors in a borrower's historical credit risk and...

Q:

=+to determine what the expense is for the current year? The amount of the final retirement depends on many uncertainties: salary levels, employee longevity, mortality rates, and interest earned on...

Q:

Report a p-value for the test performed in Problem 8.23? Cardiovascular Disease, Pediatrics A study in Pittsburgh measured various cardiovascular risk factors in children at birth and during their...

Q:

Test for whether the standard deviation of CO is significantly different in the two types of working environments? Pulmonary Disease A 1980 study was conducted whose purpose was to compare the indoor...

Q:

Test for whether or not the mean CO is significantly different in the two types of working environments? Pulmonary Disease A 1980 study was conducted whose purpose was to compare the indoor air...

Q:

You are provided with the following information for Ivanhoe Company, effective as of its Apri 30,2002 year-end. Prepare an income statement for Ivanhoe Company for the year ended Aprii 30.2022 (Enter...

Q:

iii Chapter 23, Problem 3PSA Bookmark Show all steps: ON Ky Problem

Q:

Describe a situation in which an increase in sales revenues should not be credited to the marketing manager. How would you interpret the overall performance of your marketing manager when the firm...