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demand for dvd rentals at a video store

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Question

demand for dvd rentals at a video store is described by the equation Q=4000-500p where Q denotes the number of dvds rented per week and P is the rental price in dollars.;A. determine the point price elasticity of demand at P=$3.00;B. what would be the new point price elasticity if the price were raised to p=$4.50;C. if the profit maximizing price is $4.50 what is the marginal cost of a rental.

 

Paper#31068 | Written in 18-Jul-2015

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