Consider the Q-P curve Q = 80 3P. (a) Determine the inelastic and elastic price ranges.

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Consider the Q-P curve Q = 80 − 3P.

(a) Determine the inelastic and elastic price ranges.

(b) Given the current price is $15, calculate its point elasticity. Should the price be increased or decreased to increase the revenue. Explain why?

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Operations Research An Introduction

ISBN: 9780137625727

11th Edition

Authors: Hamdy A. Taha

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Question Posted: Feb 23, 2023 07:44 AM

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Consider the Q-P curve Q = 80 3P. (a) Determine the inelastic and elastic price ranges.

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a R QP 80P3P2 R 80 6P 0 yields maxR at P 806 1333 with Q 80 31333 40 Thus e 1 at 40 1...View the full answer

Operations Research An Introduction

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