1.The demand function for a product is given byp^2+px=10

a) Find the elasticity when the price is $1.

b) Determine the type of elasticity.

c) Discuss how a price increase or decrease will affect total revenue.

2.Consider the demand equationx=2/3 (36-p^2), where 0 <p<6

a) Determine when the demand will be unitary, the interval where demand will be inelastic, and the interval

where it will be elastic.

b) In each of the above three cases, tell what happens to the total revenue when the price increases.

3.A 5-meter ladder is leaning against the side of a house. The foot of the ladder is 3 meters from the house and is pulled away from the house at a rate of0.4 meter/sec. Determine how fast the top of the ladder is moving down the wall.

4.The quantity demanded monthly for a product is related to its price p (in dollars) by x^2+4xp+p^2=8,125 If the price is increasing at the rate of$3 per month when the price is$25, discuss the rate of change in the demand.

Answers

1 a) 11/9

b) elastic

c) increase in price will decrease revenue; decrease in price will increase revenue

2) a unitary when p= 32 ($4.24) inelastic when 0 <p<32 elastic 32<6

b) unitary: revenue does not change; inelastic: revenue increases; elastic: revenue decreases

3) 0.3 meters/sec

4) Approximate decrease in demandof 3.75 units/month