Suppose that at price p = 15 dollars the demand for a product is elastic. If the price is raised, what will happen to revenue?

Question

Suppose that at price p = 15 dollars the demand for a product is elastic.  If the price is raised, what will happen to revenue?

anonymous · Answer

@precal  can u help?

precal · Answer

is this business calculus? this sounds like business calculus

anonymous · Answer

no its just calculus

anonymous · Answer

this was the previous question before this hold on

anonymous · Answer

Find (a) the elasticity of demand and (b) the range of prices for which the demand is elastic (E , -1). f(p) = 200(30 - p)

precal · Answer

this is business calculus, maybe your book listed it as a word problem for calculus.  You should have some sort of equation about elastic. Ok the way you wrote it, I would just sub p=-1  but that does not look correct.  Sorry, I no longer own a business calculus book so I am unable to look up any formulas for you.

anonymous · Answer

yea i already found the elasticity its -1

anonymous · Answer

would i just substitute 15 like this  200(30 - 15) = 3000

anonymous · Answer

then compare the revenue?

precal · Answer

but where did the 15 come from?

anonymous · Answer

in the question suppose that at price  p = 15

precal · Answer

http://www.youtube.com/watch?v=NHUW-00krxk watch this, this will help you

anonymous · Answer

ok

precal · Answer

he is using the formula that I am referring to

precal · Answer

http://www.csusm.edu/mathlab/documents/M132BusCalcFormulas%20r1-12e.pdf 2nd page has the formula