# Science:Math Exam Resources/Courses/MATH104/December 2013/Question 05

MATH104 December 2013
Other MATH104 Exams

### Question 05

Currently 1800 people ride a commuter passenger ferry each day and pay $4 for a ticket. The number of people q willing to ride the ferry at price p is determined by the relationship ${\displaystyle p=\left({\frac {q-3000}{600}}\right)^{2}.}$ The company would like to increase its revenue. Use the price elasticity of demand ${\displaystyle \epsilon }$ to give advice to management on whether it should increase or decrease its price from$4 per passenger. Recall that ${\displaystyle \epsilon ={\frac {p}{q}}{\frac {dq}{dp}}.}$

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