The proprietor of the Showplace, a video store, has estimated that the rental price p (in dollars) of prerecorded video discs is related to the quantity x rented/day by the demand equation Currently, the rental price is $2/disc. Is the demand elastic or inelastic at this rental price? If the rental price is increased, will the revenue increase or decrease?
A) elastic, increase
B) inelastic, increase
C) elastic, decrease
D) inelastic, decrease

Question

The proprietor of the Showplace, a video store, has estimated that the rental price p (in dollars) of prerecorded video discs is related to the quantity x rented/day by the demand equation  Currently, the rental price is $2/disc. Is the demand elastic or inelastic at this rental price? If the rental price is increased, will the revenue increase or decrease?
A) elastic, increase 
B) inelastic, increase 
C) elastic, decrease 
D) inelastic, decrease

Quizplus · Accepted Answer

The Answer of The proprietor of the Showplace, a video store, has estimated that the rental price p (in dollars) of prerecorded video discs is related to the quantity x rented/day by the demand equation  Currently, the rental price is $2/disc. Is the demand elastic or inelastic at this rental price? If the rental price is increased, will the revenue increase or decrease?
A) elastic, increase 
B) inelastic, increase 
C) elastic, decrease 
D) inelastic, decrease

The Proprietor of the Showplace, a Video Store, Has Estimated