E(p)-(ã®). dp ) D(p) The exercises that follow will help you understand how the value of elasticity at any price p* is related to revenue. dR (1) Find te ofhange of revenue with respect to price, by differentiating. dp R(p)-p. D(p). Show that dRDpE(p) after some simplification. that follow, from (2) There are three possibilities for the behavior of revenues at a price p-p* dR in terms of D and E (we are assuming that D(P) has a negative slope, so the equation dp demand decreases as price increases.) When-l
