Question: 6. (25) The demand function for a certain product is P = 400 0.029 where p is the unit price in hundreds of dollars and
6. (25) The demand function for a certain product is P = 400 0.029 where p is the unit price in hundreds of dollars and q is the quantity demanded per week. Calculate (a) Elasticity of demand E(p) and the values of p where demand is elastic, in- elastic and unitary. (b) Will revenue increase or decrease when price is increased slightly from p = 10 ? Explain. (c) How many units should be manufactured and sold each week in order to maximize the total revenue
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