For the demand function q equals upper d (p )equals 357 minus p, find the following. a) the elasticity b) the elasticity at pequals89, stating whether the demand is elastic, inelastic or has unit elasticity c) the value(s) of p for which total revenue is a maximum (assume that p is in dollars)

The required elasticity is .

The demand is inelastic.

The required value of p for which total revenue is maximum is 178.5

Step-by-step explanation:

Consider the provided function.

Part (A) The elasticity

The elasticity of demand is:

But elasticity is always positive therefore,

Hence, the required elasticity is .

Part (b) The elasticity at p=89, stating whether the demand is elastic, inelastic or has unit elasticity.

Substitute p=89 in above elasticity formula.

The above value is less than 1, therefore the demand is inelastic.

Part (C) The value(s) of p for which total revenue is a maximum (assume that p is in dollars).

For maximum revenue substitute E=1.

Hence, the required value of p for which total revenue is maximum is 178.5