Question: The demand function for your product is given by q = f (p) = arccos radical((p^2 + 1)/1000) where q is the quantity in units
The demand function for your product is given by q = f (p) = arccos radical((p^2 + 1)/1000) where q is the quantity in units of thousands and p is the price per unit in dollars. (a) (3 points) Compute E(p) the elasticity of demand and determine whether the demand is elastic, inelastic, unitary when the price is p = 12 and when p = 30. (b) (1 point) The revenue is optimized wthen the elasticity is unitary. At which integer valued price should you set your product to optimize revenue? You do not need to show your computations, but you can explain how your found it. (c) (1 point) Give the linear approximation to f(p) near p = 12. Use two decimal digits.
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