Calculus revenue problem

Question

Suppose for a particular commodity, e=0.67 and that currently 10,000 units are selling for $6 each. How does a 1% increase in price affect the revenue?

Answer 1

Price increase 1%, then e = - Δq/Δp; Δq = - eΔp = - 0.67%.So, demand decrease by 0.67%.

So, if initial revenue R₀ = 6·10000 = $60000 then R = 6.01·(10000 - 67) = 6.01·9933 = $5969.33.

ΔR = 59697.33 - 60000 = - $302.67

This is decrease in revenue