In this lesson on elasticity, students will learn how to compute the elasticity of a commodity at any price given the demand function. They will then use the elasticity function to find the maximum revenue and corresponding price/quantity of the commodity. By understanding the relationship between elasticity and revenue, students will be able to predict how changes in price will affect demand, and thus make informed decisions about pricing strategies.
Be able to compute the elasticity of a commodity at any price given the demand function. Use the elasticity function to find the maximum revenue and corresponding price/quantity of the commodity.
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