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Question 03 (b) 

The price (in dollars) and the demand for a product are related by the following demand equation: If the current demand is , will the revenue increase or decrease if the price is raised slightly? 
Make sure you understand the problem fully: What is the question asking you to do? Are there specific conditions or constraints that you should take note of? How will you know if your answer is correct from your work only? Can you rephrase the question in your own words in a way that makes sense to you? 
If you are stuck, check the hint below. Consider it for a while. Does it give you a new idea on how to approach the problem? If so, try it! 
Hint 

The revenue function is given by . 
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Solution 

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Please rate my easiness! It's quick and helps everyone guide their studies. Substituting in the relation given, we obtain that . Next, we determine the value of when . From the calculation in the above, we know that , substituting yields: . Last, we check what the change in revenue is when . Recall that and hence, using the product rule when differentiating with respect to price, . Substituting , we obtain that . Since when price , slightly raising the price will increase the revenue. 