Question

100 3. The demand curve for a commodity is given by q-Show that the price at which revenue is maximised is also equal to the price at which the demand for the product is unitary elastic. Given that price elasticity of demand E(p) can be found using the formula E(p)=-÷ de and unitaryelasticityoccurs where lE(p)1=1

0 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
100 3. The demand curve for a commodity is given by q-Show that the price at...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • 2. Demand and supply equations for Good X is given as: Demand: P=6 - (1/50) Q...

    2. Demand and supply equations for Good X is given as: Demand: P=6 - (1/50) Q and Supply: P= 1 + (1/100) Q [P: Price, Q: Quantity] i. Given the above information find the equilibrium price and quantity for Good X. ii. What is the point elasticity of demand at equilibrium? Is it elastic, inelastic or unitary elastic? iii. What is the point elasticity of supply at equilibrium? Is it elastic, inelastic or unitary elastic? iv. If the price increases...

  • 3. For each of the following demand curves i) Find the price-elasticity of demand in terms...

    3. For each of the following demand curves i) Find the price-elasticity of demand in terms of P ii) Determine the range of P values for which the de- mand curve is perfectly elastic, elastic, unitary elas tic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0< P < 10, unitary elastic at P 10, etc) iii) Calculate the price-elasticity of demand at P-3 and give an interpretation in words of what that means...

  • 3. For each of the following demand curves i) Find the price-elasticity of demand in terms...

    3. For each of the following demand curves i) Find the price-elasticity of demand in terms of P ii) Determine the range of P values for which the de- mand curve is perfectly elastic, elastic, unitary elas tic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0< P < 10, unitary elastic at P 10, etc) iii) Calculate the price-elasticity of demand at P-3 and give an interpretation in words of what that means...

  • Suppose the demand curve for iPads takes the functional form: Q^d(P) = 500 – 10P; what...

    Suppose the demand curve for iPads takes the functional form: Q^d(P) = 500 – 10P; what is the own price elasticity of demand when the price is $30? Is the own price elasticity of demand for iPads elastic E >1, inelastic E < 1, or unitary elastic E = 1? And what implications does that outcome have with respect to the producer’s total revenue (TR = PQ)?

  • 3. Suppose the demand function for a firm's product is given by In Q 7-1.5 In...

    3. Suppose the demand function for a firm's product is given by In Q 7-1.5 In P 2 In P, -0.5 In M +InA where P = $15, P, = $6, M $40,000, and A $350. a. Determine the own price elasticity of demand, and state whether demand is b. Determine the cross-price elasticity of demand between good X and good c. Determine the income elasticity of demand, and state whether good X is a d. Determine the own advertising...

  • The demand function for specialty steel products is given, where p is in dollars and q...

    The demand function for specialty steel products is given, where p is in dollars and q is the number of units. p = 150 3 130 − q (a) Find the elasticity of demand as a function of the quantity demanded, q. η = (b) Find the point at which the demand is of unitary elasticity. q = Find intervals in which the demand is inelastic and in which it is elastic. (Enter your answers using interval notation.) inelastic elastic...

  • For each of the following demand curves: i) Find the price-elasticity of demand in terms of...

    For each of the following demand curves: i) Find the price-elasticity of demand in terms of P. ii) Determine the range of P values for which the demand curve is perfectly elastic, elastic, unitary elastic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0 < P < 10, unitary elastic at P = 10, etc). iii) Calculate the price-elasticity of demand at P = 3 and give an interpretation in words of what that...

  • For each of the following demand curves: i) Find the price-elasticity of demand in terms of...

    For each of the following demand curves: i) Find the price-elasticity of demand in terms of P. ii) Determine the range of P values for which the demand curve is perfectly elastic, elastic, unitary elastic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0 < P < 10, unitary elastic at P = 10, etc). iii) Calculate the price-elasticity of demand at P = 3 and give an interpretation in words of what that...

  • Suppose the supply curve for apples is given by QS = 2P, where QS is the...

    Suppose the supply curve for apples is given by QS = 2P, where QS is the quantity offered for sale when the prices is P. Also, suppose the demand curve for apples is given by QD = 182 − 4P I, where QD is the quantity of apples demanded when the price is P and the level of income is I. a) Find the equilibrium P and Q when I = 6. b) Find price-elasticity of demand at the equilibrium...

  • 4. Suppose the supply curve for apples is given by QS -2P, where QS is the...

    4. Suppose the supply curve for apples is given by QS -2P, where QS is the quantity offered for sale when the prices is P. Also, suppose the demand curve for apples is given by QD- 182-4PI, where QD is the quantity of apples demanded when the price is P and the level of income is erw a) Find the equilibrium P and Q when I -6 b) Find price-elasticity of demand at the equilibrium when 6, and give an...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT