p is in dollars and q is the number of units. Find the elasticity of the demand function at and use it to determine how a price increase will affect total revenue.
A) Since the demand is elastic, an increase in price will decrease the total revenue.
B) Since the demand is elastic, an increase in price will increase the total revenue.
C) Since the demand is inelastic, an increase in price will decrease the total revenue.
D) Since the demand is inelastic, an increase in price will increase the total revenue.
E) No change in revenue.

Question

p is in dollars and q is the number of units. Find the elasticity of the demand function  at  and use it to determine how a price increase will affect total revenue. ​
A) Since the demand is elastic, an increase in price will decrease the total revenue. 
B) Since the demand is elastic, an increase in price will increase the total revenue. 
C) Since the demand is inelastic, an increase in price will decrease the total revenue. 
D) Since the demand is inelastic, an increase in price will increase the total revenue. 
E) No change in revenue.

Quizplus · Accepted Answer

The Answer of p is in dollars and q is the number of units. Find the elasticity of the demand function  at  and use it to determine how a price increase will affect total revenue. ​
A) Since the demand is elastic, an increase in price will decrease the total revenue. 
B) Since the demand is elastic, an increase in price will increase the total revenue. 
C) Since the demand is inelastic, an increase in price will decrease the total revenue. 
D) Since the demand is inelastic, an increase in price will increase the total revenue. 
E) No change in revenue.

P Is in Dollars and Q Is the Number of Units