Price of pen 20 rupees then elasticity of demand 1.6 . Find the MR

Question

if the price elasticity of demand of a product is ( -3 ) what should be the price of the product for its MR to be 20?

180 Views

Answer 1

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

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Price of pen 20 rupees then elasticity of demand 1.6 . Find the MR

Related Questions

if the price elasticity of demand of a product is ( -3 ) what should be the price of the product for its MR to be 20?

the one pen price is 5 rupees and 10 pen price.

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

Trending Articles/News

Sign In/Sign Up

Download the Careers360 App on your Android phone

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

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