The demand equation for the Roland portable hair dryer is given by
, where x (measured in units of a hundred) is the quantity demanded per week and p is the unit price in dollars.
Is the demand elastic or inelastic when
?
__________
Is the demand elastic or inelastic when
__________
When is the demand unitary? Round the answer to two decimal places. (Hint: Solve
for p).
__________
If the unit price is increased slightly from $10, will the revenue increase or decrease?
__________
If the unit price is lowered slightly from $8, will the revenue increase or decrease?
__________
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