# Find the price, if the marginal revenue is 28 and elasticity of demand is 3. - Mathematics and Statistics

Sum

Find the price, if the marginal revenue is 28 and elasticity of demand is 3.

#### Solution

Given, marginal revenue (Rm) = 28 and
elasticity of demand (η) = 3

"R"_"m" = "P"(1 - 1/eta)

∴ 28 = "P" (1 - 1/3)

∴ 28 = "P" (2/3)

∴ (28 xx 3)/2 = P

∴ P = 42

∴ price = ₹ 42

Concept: Application of Derivatives to Economics
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#### APPEARS IN

Balbharati Mathematics and Statistics 1 (Commerce) 12th Standard HSC Maharashtra State Board
Chapter 4 Applications of Derivatives
Exercise 4.4 | Q 7.2 | Page 112
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