Over what range of output is demand elastic. at the, Ask an Expert

Economics

Demand Elasticity : key informaiton

1. A consultant estimates the price-quantity relationship for New World Pizza to be
P=50-5Q.

a. At what output rate is demand unitary elastic?

b. Over what range of output is demand elastic?

c. At the current price, 8 units are demanded each period. If the objective is to increase total revenue, should the price be increased or decreased? describe.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M926028

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