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The demand equation for Good Y is given by
P = 900/q - 0.48q + 100 q > 0
In this question use derivatives to explore the relationship between the demand for Good Y, total revenue and elasticity.
Task
Whether the demand is elastic, unit elastic or inelastic when q = 60, and interpret the result.
7. Determine value of q which maximizes total revenue.
8. What price must be charged to maximize total revenue?
9. Complete the following table, giving the corresponding rang or value for price and quantity, and whether marginal revenue is positive, negative or zero for corresponding range or value.
Demand
Inelastic
Unit Elastic
Elastic
Price
Quantity
Marginal Revenue
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