Question: The demand function of a good is: () = ( + 1) 2. a)Find the elasticity of demand for price (the answer is a function).

The demand function of a good is: () = ( + 1) 2.

a)Find the elasticity of demand for price (the answer is a function).

b)At what value (p) is the price elasticity of demand equal to -1?

c)Calculate the total revenue of the company and using algebra calculate the value (p) at which the total revenue is maximized.

d)Suppose we have the general form of demand () = ( + ) where > 0 and b> 1.What is the price elasticity of demand and when is it equal to -1?

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