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Help 3. [4 points] In our textbook, it is shown that do = p(1 + .), where r, q, pin stands for revenue, quantity, price,
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3. [4 points] In our textbook, it is shown that do = p(1 + .), where r, q, pin stands for revenue, quantity, price, point elasticity of demand respectively. If demand is unit elastic in this case, and price is held constant, then what conclusion can be drawn in terms of revenue at q? (A) The instantaneous rate of change of revenue is 2p. (B) The instantaneous rate of change of revenue is 0. (C) The instantaneous rate of change of revenue is either 2p or 0. (D) The revenue in this case is the same value as the profit because unit elasticity implies that revenue equals costStep by Step Solution
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