please do all answers. For the given demand-price function and quantity:price 15 quantity.55quantity = 210123a. Find the price associated with the given quantity:11b. Find the elasticity for the given quantity:c. State which pricing strategy increases revenue:Lowerd. Find the price and quantity that maximizes profit:7.5412.5pricequantity:

Demand measures the willingness and the ability of the individual to pay for the commodity. The…

For the given demand-price function and quantity: — price = 15 quantity; quantity = 210 55 a. Find the price associated with the given quantity: 123 11 b. Find the elasticity for the given quantity: O c. State which pricing strategy increases revenue: Lower

For the given demand-price function and quantity: — price = 15 quantity; quantity = 210 55 a. Find the price associated with the given quantity: 123 11 b. Find the elasticity for the given quantity: O c. State which pricing strategy increases revenue: Lower

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

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Question

please do all answers.

For the given demand-price function and quantity:
price 15 quantity.
55
quantity = 210
123
a. Find the price associated with the given quantity:
11
b. Find the elasticity for the given quantity:
c. State which pricing strategy increases revenue:
Lower
d. Find the price and quantity that maximizes profit:
7.5
412.5
price
quantity:

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Step 1: Define demand

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Step 2: Determine price

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Step 3: Determine elasticity

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Step 4: Determine pricing strategy

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Step 5: Find the profit-maximizing level

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