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Question: In Problem the demand functions for specialty steel products are given, where p is in dollars and q is the number of units. For both problems;
(a) Find the elasticity of demand as a function of the quantity demanded, q.
(b) Find the point at which the demand is of unitary elasticity and find intervals in which the demand is inelastic and in which it is elastic.
(c) Use information about elasticity in part (b) to decide where the revenue is increasing, where it is decreasing, and where it is maximized.
(d) Graph the revenue function R = pq, and use it to find where revenue is maximized. Is it at the same quantity as that determined in part (c)?
p = 30√(49 - q)
Some fields have large enough quantities of both oil and natural gas that coordination must be achieved for the production of both, rather than oil a in our examples. Will fields with both oil and gas have greater difficulties in unitization.
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