Question: Demand is Q = p^ - , where p is price, Q is the quantity demanded, and and are positive constants. (i) Calculate and interpret

Demand is Q = p^ - , where p is price, Q is the quantity demanded, and and are positive constants.

(i) Calculate and interpret the elasticity of demand with respect to price.

(ii) Let = 1. Use your elasticity of demand from question 3. (i) above to show how a change in price will affect total revenue at all the points along the demand curve.

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