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Math 142 Section 4.5 Examples Example 1: The demand function for a particular brand of dog sweaters is x = −2p3 +22p+18000, where x is the number of dog sweaters and p is the price per dog sweater. a) Calculate elasticity of the demand function. b) Is it elastic, inelastic, or unit elasticity at p = $20? c) Is it elastic, inelastic, or unit elasticity at p = $5? Math 142 Section 4.5 Examples Example 2: The demand function for a particular commodity is given by x = 173, 280 − 40p2 . At what price will revenue be maximized? Example 3: When the price for a particular brand of shoes is $60, the elasticity E(60) = 2.5. a) If the price is raised by $0.60, will the demand increase or decrease? By what percent will the demand change? b) If the price is lowered by $8, will the demand increase or decrease? By what percent will the demand change?