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The demand cure for a particular product is given by: Q=900-5P. Answer the following questions: a What will be the total revenue at price of
The demand cure for a particular product is given by: Q=900-5P. Answer the following questions: a What will be the total revenue at price of Rs. 100? [1] b. At what price would the demand be 60 units? At this price, which of these two alternatives would benefit more: increasing the price by one unit, or decreasing the price by one unit? [4] c. Will it be beneficial to the producer, in terms of increase in revenue, to increas the price from Rs. 100 to Rs. 180 ? [2] d. What is the are elasticity of demand when the price is increased from Rs. 100 to Rs. 180? [2]
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