Advertisement Remove all ads

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.

Advertisement Remove all ads

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
  Is there an error in this question or solution?
Advertisement Remove all ads

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
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×