Economics Function (unseen before)

Aug 2012
866
0
South Carolina
The demand function for a product is modeled by
p ? 60 ? 0.04x, 0 ? x ?1500
where p is the price (in dollars) and x is the number of units.
(a) Determine when the demand is elastic, inelastic, and of unit elasticity.
(b) Use the result of part (a) to describe the behavior of the revenue function


ok I have not seen this type of application problem before so I wanted to ask Mark or Agent or someone to help me with the structuing(setting up the problem)
 
Jul 2010
12,211
522
St. Augustine, FL., U.S.A.'s oldest city
Please reformat the question...those symbols are unknown to me, and looks like a copy and paste gone wrong! :D
 
Aug 2012
866
0
South Carolina
The Demand Function for a product is modeled by p = 60 - 0.04x , 0 <= x <= 1500 where p is price in dollars and x is the # of units.

(a) Determine when the demand is elastic, inelastic, and of unit elasticity

(b) Use the result of part (a) to describe the behavior of the revenue function
 
Jul 2010
12,211
522
St. Augustine, FL., U.S.A.'s oldest city
What are you told about elasticity?
 
Aug 2012
866
0
South Carolina
umm I took both Macro and Micro Economics and I am drawing a blank(I know that is terrible)

should I use google here to obtain defintion ?
 
Jul 2010
12,211
522
St. Augustine, FL., U.S.A.'s oldest city
Your book gives you this problem, but no definitions? Hmm...yes I would google it, to find it.
 
Aug 2012
866
0
South Carolina
I have 1 book for elementary calc but no book for the biz calc class

these are worksheet problems but yes I could prob dig through it funny I don't re going over price elasticity or demand or supply function ever in calc

this is what stood out when I wiki'd it ...
Price elasticities are almost always negative

talk to me Mark
 
Jul 2010
12,211
522
St. Augustine, FL., U.S.A.'s oldest city
When I took Microeconomics, I had already had Calculus, so I did a 12 page exploration of elasticity which I presented to my professor, and she laughed and said, "are you trying to make me feel stupid?"

However, this was about 20 years ago, so all I remember from it is that I found that hyperbolic demand curves are "iso-elastic." :lol:

You need to find the definition of elasticity, involving a derivative, and use that. 'Bout all I can tell you without doing the research myself. You could do a search on this site as well, as I know I have solved several elasticity problems here... :wink:
 
Aug 2012
866
0
South Carolina
ok I will search here and in my book

did u get my pm
 
Jul 2010
12,211
522
St. Augustine, FL., U.S.A.'s oldest city
Yes, and once I get some time I will check it out. 8)
 
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