The Demand Equation for the Roland Portable Hair Dryer Is

question 28

Short Answer

The demand equation for the Roland portable hair dryer is given by , where x (measured in units of a hundred) is the quantity demanded per week and p is the unit price in dollars.
Is the demand elastic or inelastic when p=8 ? __________
Is the demand elastic or inelastic when p=10? __________
When is the demand unitary? Round the answer to two decimal places. (Hint: Solve for p). p = __________
If the unit price is increased slightly from $10, will the revenue increase or decrease? __________
If the unit price is lowered slightly from $8, will the revenue increase or decrease? __________

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Definitions:

Hyperinflation

An extremely high and typically accelerating rate of inflation, often causing a rapid erosion of the real value of local currency and leading to a collapse in a nation's monetary system.

After-tax Real Interest Rate

The interest rate adjusted for inflation after taxes have been taken into account.

Nominal Interest

The interest rate before adjustments for inflation. In contrast, real interest rates take inflation into account.

After-tax Real Interest Rate

The real interest rate that remains after adjusting for both inflation and the impact of taxes, reflecting the actual earning power of an investment after inflation and tax effects.