The demand function for our product is: q=90-0.1p^2
a.) fine the elasticity when q=50.
b.) is the demand elastic or inelastic?
if we raise the price will our total revenue increase or will it decrease? find the maximum revenue and the values of p and q which will maximize the revenue.

Assuming that "elasticity" = P:

A.  - Elasticity = -0.889

B.  - The demand is inelastic because the elasticity > -1.

(C). Set P and Q to 1 in two separate functions. If Q < P revenue will increase. If Q > P revenue will decrease.



Q > P therefore revenue will decrease.

(D). 

One obviously won't be able to maximize revenue if their price per unit, P, equals 0. Quantity of a product can only be sold in whole, so the closest integer to 90 is 89. The value of P that maximizes revenue is  - sqrt(10).

Therefore, the values of P and Q that maximize revenue are 3.162 and 89, respectively.

It’s 5 points actually