Elasticity of Demand for DVD Rentals The proprietor of the Showplace, a video store, has estimated that the rental price p (in dollars) of prerecorded DVDs is related to the quantity x (in thousands) rented/day by the demand equation 2 _ X_V35'P2 (051356) Currently, the rental price is $3/disc. (a) Is the demand elastic or inelastic at this rental price? elastic inelastic (b) If the rental price is increased, will the revenue increase or decrease? increase decrease