Question: The demand function for a Christmas music CD is given by x = 0.25(225 p 2 ) Where x (measured in units of a

The demand function for a Christmas music CD is given by x = 0.25(225 – p2)

Where x (measured in units of a hundred) is the quantity demanded per week and p is the unit price in dollars.

a) Evaluate the elasticity at 10. E(10) =___________________

b) Should the unit price be lowered slightly from 10 in order to increase revenue? ____________

c) When is the demand unitary p = __________________

d) What is the maximum revenue? Revenue = _________________

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