Science talk:Math Exam Resources/Courses/MATH104/December 2014/Question 03 (b)
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|Unnatural Solution||0||14:22, 8 May 2015|
Given part (a), this solution is intended to go something like:
1. Part (a) we have the price elasticity
2. Here q=3 and p=2
3. Plug in to price elasticity and compare to -1. If bigger than -1 then R' is positive and so slight increase in price increases revenue. If less than -1 then R' is negative and so a slight increase in price decreases revenue.
Note also that the hint should be my third point above.
Anyways I'm not sure if the current solution is correct either someone should double check. If it is then move it to Solution 2. If not, fix it then move to solution 2.