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equation for the point elasticity as a function of quantity

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3. The demand equation for a product is given by P =30 - 0.1Q²

a. Write an equation for the point elasticity as a function of quantity.
b. At what price is demand unitary elastic?

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a. since P =30 - 0.1Q²
the differential of P is
dP/dQ = -0.2Q
The formula of point elasticity is
E = ...

Solution Summary

Point Elasticity is featured.

$2.19
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d. Find the price that maximizes total revenue. What is the elasticity of demand at this point? What is the total revenue?

e. Jamison's marginal costs are $100 per ton. Find Jamison's profit maximizing output and price.

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