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February 26th, 2012, 02:23 PM  #1 
Senior Member Joined: Feb 2012 Posts: 110 Thanks: 0  Revenue and elasticity
The pricedemand equation for home delivered large pizza is p= 38.20.002x 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! 
February 26th, 2012, 07:25 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.) 

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