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Minchanka [31]
3 years ago
5

(a) If the demand equation is pq=k for a positive constant k, compute the elasticity of demand.

Business
1 answer:
nirvana33 [79]3 years ago
8 0

Answer:

a.Elasticity of demand is p = k/q (an inverse relationship between the price and quantity)

b.My answer in part (a) means that an increase in the price of the item will lead to a decrease in its demand, hence the following applies

1.All prices are critical points of the revenue function.

2.Revenue is increased by lowering the price

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$121,363

Explanation:

The amount in 30 years is known as the Future Value (FV) . We arrive at this figure by compounding the Present Value using the interest earned on the savings as follows :

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Answer:

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