Question 1 Consider the demand function. q= D(x) = 400e-0.2z a) Find the elasticity. E(x)= b) Find the elasticity at z = 3. Round to one decimal place. State whether the demand is elastic (type - E) or inelastic (type 1) c) Find the elasticity at = 18. Round to one decimal place. State whether the demand is elastic (type E) or inelastic (type 1). d) At a price of $3, will a small increase in price cause the total revenue to increase (1) or decrease (D)? Type I or D. || e) Find the price for which the total revenue is a maximum.

Question 1 Consider the demand function. q= D(x) = 400e-0.2z a) Find the elasticity. E(x)= b) Find the elasticity at z = 3. Round to one decimal place. State whether the demand is elastic (type - E) or inelastic (type 1) c) Find the elasticity at = 18. Round to one decimal place. State whether the demand is elastic (type E) or inelastic (type 1). d) At a price of $3, will a small increase in price cause the total revenue to increase (1) or decrease (D)? Type I or D. || e) Find the price for which the total revenue is a maximum.

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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