The rectangular prism shown is made up of unit cubes. Each unit cube has a length of one inch, a width of one inch, and a height
1 answer:
You might be interested in
Answer:
Demand is inelastic at p = 9 and therefore revenue will increase with
an increase in price.
Step-by-step explanation:
Given a demand function that gives <em>q</em> in terms of <em>p</em>, the elasticity of demand is
- If E < 1, we say demand is inelastic. In this case, raising prices increases revenue.
- If E > 1, we say demand is elastic. In this case, raising prices decreases revenue.
- If E = 1, we say demand is unitary.
We have the following demand equation ; p = 9
Applying the above definition of elasticity of demand we get:
where
- p = 9
- q =
Substituting the values
Demand is inelastic at p = 9 and therefore revenue will increase with an increase in price.