The answer is 12.5 .
Marginal Value can be expressed as MR = dTR/dQ ,
dTR with respect to dQ is the first derivative of the total revenue function.
This formula of MR is very useful when the demand function has a known constant price elasticity.
So, here it becomes mr =price/elasticity
=20/1.6 =12.5
Question : Which one is not the type of elasticity of demand?
Question : The elasticity of demand for price is:
Question : Assertion: When the price of a product increases by 10%, and the quantity demanded decreases by 20%, the price elasticity of demand is 0.5.
Reason: Price elasticity of demand measures the percentage change in quantity demanded divided by the percentage change in
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile