A: Suppose the initial demand at the price of $10 was 100. When the price rises to $12, the demand drops to 30. Find the price elasticity of the demand. Is the demand elastic or inelastic in this price range? Will the revenue increase or decrease as the result of this price change? Justify your answer.B:. Using calculus, calculate the price elasticity of the following demand functions: D(p)=10-2ln(p) and D(p)=7p -3 .C: Suppose now that the demand is D(p)=12-3p. At what price is the revenue maximized? What is the maximum revenue? What is the price elasticity of demand at this price? a. Suppose the initial demand at the price of $10 was 100. When the price rises to $12, thedemand drops to 30. Find the price elasticity of the demand. Is the demand elastic orinelastic in this price range? Will the revenue increase or decrease as the result of this pricechange? Justify your answer.b.Using calculus, calculate the price elasticity of the following demand functions:D(p)=10-2ln (p) and D(p)=7p-³.c. Suppose now that the demand is D(p)=12-3p. At what price is the revenue maximized? Whatis the maximum revenue? What is the price elasticity of demand at this price?

Price elasticity of demand is calculated as the ratio of the percentage change in quantity demanded…

Answered: A: Suppose the initial demand at the…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...

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A: Suppose the initial demand at the price of $10 was 100. When the price rises to $12, the demand drops to 30. Find the price elasticity of the demand. Is the demand elastic or inelastic in this price range? Will the revenue increase or decrease as the result of this price change? Justify your answer.

B:. Using calculus, calculate the price elasticity of the following demand functions: D(p)=10-2ln(p) and D(p)=7p ^-3 .

C: Suppose now that the demand is D(p)=12-3p. At what price is the revenue maximized? What is the maximum revenue? What is the price elasticity of demand at this price?

a. Suppose the initial demand at the price of $10 was 100. When the price rises to $12, the
demand drops to 30. Find the price elasticity of the demand. Is the demand elastic or
inelastic in this price range? Will the revenue increase or decrease as the result of this price
change? Justify your answer.
b.
Using calculus, calculate the price elasticity of the following demand functions:
D(p)=10-2ln (p) and D(p)=7p-³.
c. Suppose now that the demand is D(p)=12-3p. At what price is the revenue maximized? What
is the maximum revenue? What is the price elasticity of demand at this price?

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