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When n = 1, demand is unit elastic or has unit elasticity and is passing through a maximum from where the revenue function is increasing to decreasing.
Specifically, electricity demands for manufacturing and retail uses are price inelastic and close to unit elastic, respectively, while those for agricultural and residential uses are not statistically significant.
Y is elastic with respect to x if E is greater than 1, inelastic with respect to x if E is less than 1, and "unit elastic" with respect to x if E is equal to 1. Elasticity is a very important concept in economics.
Revenue is maximized when price p = $12.50 and demand is unit elastic.
Practice with some example problems: Find the price at which demand is unit elastic for: D p) = 60e^-.1p where D'(p) = -6e^-.1p [Answer: p = 10].
Given the Demand Function D p) = 975 - 39p, find the price that maximizes revenue by finding the price at which demand is unit elastic.
Similar(54)
By exploring locally resonant effect of the building units, elastic metamaterials are able to possess negative values of effective mass, effective bulk or shear modulus.
Using county-level data, this research illustrates that population is a unit-elastic determinant of total carbon emissions.
The OPE of energy is about − 1, indicating that energy is unit-elastic in demand.
The factors energy and capital are unit-elastic in demand (ηEE=− 1.03, ηKK=−1.09), while the factors labor and material are both inelastic.
ANOVA: analysis of variance; AWS: Amazon Web Services; CPU: central processing unit; EC2: elastic compute cloud; eQTL: expression quantitative trait loci; GEO: Gene Expression Omnibus; SNP: single nucleotide polymorphism.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com