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 $4/disc.
Is the demand elastic or inelastic at this rental price? __________
If the rental price is increased, will the revenue increase or 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 $4/disc.
​Is the demand elastic or inelastic at this rental price? __________
If the rental price is increased, will the revenue increase or 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 $4/disc.
​Is the demand elastic or inelastic at this rental price? __________
If the rental price is increased, will the revenue increase or decrease? __________

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