The demand for a type of motor bike is modelled by the demand function and its plot:

P=10Q2+10000P=10Q2+10000

1.

(a) Write down the equation fot the total revenue function

TR =

(b) Calculate the value of Q and P for which TR is maximised.

TR is maximised at Q = correct to two decimal places.

TR is maximised at P = correct to two decimal places.

(c) Calculate the price elasticity of demand when TR is maximised

e_d = correct to two decimal places.

2. For each of the values of P given in the following table, calculate (i) Q (ii) e_d; the point elasticity of demand .

P=10Q2+10000P=10Q2+10000

Round decimal numbers correct to two decimal places.

P	Q	ed
9360
3240

3. If the price increases by 14 %, when P is (i) 9360, (ii) 6665.72 and (iii) 3240, calculate the approximate percentage change in demand, using e_d .

Round your answers correct to the nearest integer.

(a) P increases by 14% at price P = 9360.

Then, percentage decrease in quantity demanded = %

(b) Price, P increases by 14% at P = 6665.72:

Then percentage decrease in quantity demanded = %

(c) Price, P increases by 14% at P = 3240:

Then percentage decreases in quantity demanded = %