Business Calculus

  Discussion Question 2[Module 4(x410)] [After you possess completed Module 4, prepare short responses to space “a” and “b” of this ace.]      In antecedent Modules the concept of figure elasticity of require was examined in situations where a work’s Require mould was direct.  In some instances, this direct Require mould prepared the premise to enunciate the work’s Revenue mould.  Not surprisingly, a 2nd command Revenue mould would effect from a 1stcommand Require mould.      Now that 3rd command moulds possess been examined, it should be practicable to market after a while figure elasticity of require situations where a work’s Require mould is quadratic, and where the enunciatement of a Revenue mould from this 2nd command Require mould effects in a 3rd command mould.  For pattern, fond the quadraticDemand mould x = 187,500 – 25(p)2, the Revenue mould would be R = (ace figure)(units sold)= (p)(x) = [(p)][187,500 – 25(p)2] ==> 187,500(p)1 – 25(p)3.      Using techniques familiar in Module 4, it should be practicable to confront the ace figure “p” associated after a while zenith Revenue (coxcombical no limitations from unpopular estate considerations on values of “p”).  Thus…for Revenue moulds in the make R = f(p), “Rmax” occurs at the ace figure “p” associated after a while [d(R)/d(p)] = (R)' = 0. R = 187,500(p)1 – 25(p)3 ==> (R)' = 187,500 – 75(p)2             @ 0 = (R)' = 187,500 – 75(p)2 ==> 75(p)2 = 187,500 ==>                 1(p)2 = $2,500.00 ==> 1(p) = $50.00   [ignore, of succession, the disclaiming rise –$50.00]             @ p = $50…Rmax = 187,500(50)1 – 25(50)3 = $6,250,000.      In HW08 from Module 3B, it was demonstrated that the figure “p” where zenith Revenue occurs (coxcombical no limitations from unpopular estate considerations on values of “p”) is the corresponding as the figure “p” where ace elasticity (ɳ = –1) occurs.  Fond that the unconcealed make of any work’s elasticity look may be written as… ɳ =  [(p) / (x)] [d(x) / d(p)] or  [(p) / (x)] [(x)′] …(a) confront the inequitable elasticity look for this work whose Require mould is x = 187,500 – 25(p)2and then (b) demonstration the steps you would use to confirm that the figure “p” associated after a while ace elasticity is, in certainty, p = $50.