Question: Consider the demand function given by D(x) = 240-20x, where D(x) is the quantity of coffee mugs demanded at a price of x dollars

Consider the demand function given by D(x) = 240-20x, where D(x) is

Consider the demand function given by D(x) = 240-20x, where D(x) is the quantity of coffee mugs demanded at a price of x dollars per mug. (5 pts) a. Find the elasticity, E= -x-D'(x) D(x) b. At a price of $2, should the company raise or lower the price to increase revenue? Explain your answer.

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