My Math Forum  

Go Back   My Math Forum > High School Math Forum > Algebra

Algebra Pre-Algebra and Basic Algebra Math Forum

LinkBack Thread Tools Display Modes
February 26th, 2012, 03:23 PM   #1
Senior Member
Joined: Feb 2012

Posts: 110
Thanks: 0

Revenue and elasticity

The price-demand equation for home delivered large pizza is
p= 38.2-0.002x

where x is the number of pizzas delivered weekly. the current price of one pizza is $21. In order to generate additional revenue from the sale of large pizzas, would you recommend a price increase or a price decrease?

Thanks guys!
tsl182forever8 is offline  
February 26th, 2012, 08:25 PM   #2
Senior Member
Joined: Apr 2011
From: USA

Posts: 782
Thanks: 1

Re: Revenue and elasticity

Start by solving for x with the p = 21. You might try graphing that (x,p) - generally the quantity is the x and money is the y. That'll give you a feel for what it looks like. But plugging in some values higher and lower than 21 and solving for x will tell you if p needs to go higher or lower.

(Unless they are expecting you to do something more fancy with this, that should do it.)
Erimess is offline  

  My Math Forum > High School Math Forum > Algebra

elasticity, revenue

Search tags for this page
Click on a term to search for related topics.
Thread Tools
Display Modes

Similar Threads
Thread Thread Starter Forum Replies Last Post
Elasticity mathkid Calculus 2 November 18th, 2012 12:40 AM
Some Thoughts on Elasticity John Creighton Economics 0 March 18th, 2012 12:28 PM
Finding the elasticity tsl182forever8 Calculus 1 March 2nd, 2012 11:08 PM
Elasticity of demand esther Calculus 1 October 1st, 2011 05:34 PM
Elasticity of demand dmxnemesis Calculus 4 October 14th, 2010 11:27 AM

Copyright © 2019 My Math Forum. All rights reserved.