Elasticity and demand?

Question

Calculus Elasticity Question?

Q: The demand function for an item is q= [700/(p+5)]

A. Please find the elasticity of demand

B. Is demand elastic or inelastic at p= 15?

C. If the price is raised, will revenue increase or decrease?

Thanks friendo

Answer 1

A:

E= -700P/Q(P+5)^2 = -P/(P+5)

B:

E= -15/20= |-3/4|= 3/4

3/4 <1

Inelastic.

C:

Increase.

(but depends by how much price will rise)

Answer 2

Take a look at this link:

http://en.wikipedia.org/wiki/Price_elast...

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http://answers.yahoo.com/my/profile;_ylt...

http://answers.yahoo.com/my/profile;_ylt...

By the way, I've reported you for doing so.

Hope this helps!

Answer 3

A.- dp/dq

B: inelastic

c: increase