The Proprietor of the Showplace, a Video Store, Has Estimated

question 226

Short Answer

The proprietor of the Showplace, a video store, has estimated that the rental price p (in dollars) of prerecorded video discs is related to the quantity x rented/day by the demand equation . Currently, the rental price is $4/disc.
​Is the demand elastic or inelastic at this rental price? __________
If the rental price is increased, will the revenue increase or decrease? __________

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Definitions:

Direct Approach

A communication style where the main message or intention is presented at the beginning.

Closing Thought

A final comment or conclusion that wraps up the preceding content, providing closure or a takeaway for the audience.

Good-News Message

Communication that delivers positive, favorable, or beneficial information to the recipient.

Routine Claims

Standard requests or complaints made by customers regarding products or services.