Question: An airline determines that when a round-trip ticket between two cities cost p dollars, where 0

An airline determines that when a round-trip ticket between two cities cost p dollars, where 0 <= p <= 160, the daily demand for tickets is D(p)=256-0.01p^(2)

a. Find the elasticity of demand. Determine the values of p for which the demand is elastic, inelastic, and of unit elasticity.

b. Interpret the result of part (a) in term of the behavior of the total revenue as a function of unit price p.

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