question archive A garden shop determines the demand function during early summer for tomato plants, where is the number of plants sold per day when the price is dollars per plant
A garden shop determines the demand function during early summer for tomato plants, where is the number of plants sold per day when the price is dollars per plant
Subject:EconomicsPrice:2.88 Bought3
A garden shop determines the demand function during early summer for tomato plants, where is the number of plants sold per day when the price is dollars per plant.
(a) Find the elasticity.
(b) Find the elasticity when .
(c). At per plant, will a small increase in price cause the total revenue to increase or decrease?
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a) We have given
This implies
Therefore, the Elasticity of demand is equal to
b) To find the elasticity at x=5
This implies
c) Total revenue function is equal
Thus, if we slightly increase the value of x=5 then the total revenue function will also increase.
