Interval over which a price increase will decrease revenue

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Americans consume about 375 billions gallons of gasoline every day, and the corresponding price-demand equation was estimated to be x=f(p)=675-75p.

Use E(p), the Elasticity of Demand to determine the price interval over which raising the price of gas will increase revenue, and the interval over which a price increase will decrease revenue.

Reference no: EM131173443

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Interval over which a price increase will decrease revenue : Americans consume about 375 billions gallons of gasoline every day, and the corresponding price-demand equation was estimated to be x=f(p)=675-75p. Use E(p), the Elasticity of Demand to determine the price interval over which raising the price of gas..

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