Suppose the demand for tickets to an amusement park can be estimated by the function D(p) =
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Suppose the demand for tickets to an amusement park can be estimated by the function D(p) = -25p2 + 63,075, where p is the price for one ticket.
(a) Find the elasticity of demand E.
(b) If the price is $25 per ticket, calculate the elasticity. Is the demand elastic or inelastic? Will an increase in price result in an increase in total revenue?
(c) Suppose instead the price is $35 per ticket. Calculate the elasticity and determine if the demand is elastic or inelastic. Will an increase in price result in an increase in total revenue?
(d) Find the price that maximizes revenue. What is the maximum revenue?
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