1. Assume the demand for oranges is Q= 60005p2, where Q is the number of pounds of oranges and p is the price of a pound of oranges. If p= $0.80 a) Is demand elastic/inelastic? A: E=0.001b) Will a 9% increase in price cause revenue to increase or decrease?
2. Assume the demand for milk tea is Q= 18004002p+ 1 where Q is the quantity and p is the price per cup of milk tea. If the current price of a cup of milk tea is$4.50a) Is demand elastic/inelastic? A: E=1.064b) Will a 10% increase in price cause revenue to increase or decrease? How will the demand of this product react to such price increase?
3. Assume the demand for toilet papers is Q= 50004pwhereQis the number of packs of toilet papers and p is the price per pack of toilet papers. If the current price of a of pack of toilet papers is$20.50 a) Is demand elastic/inelastic? A: E=0.0018b) Will a 10% increase in price cause revenue to increase or decrease?