The number of people taking city buses at price dollars per ticket is

(a) Evaluate the demand elasticity when .

Here, "demand elasticity" is the absolute value of for an infinitesimal change in price, so

(b) Currently, the price per ticket is 2 dollars. Should the price be raised in order to increase revenue?

(c) For what value of is the demand elasticity unitary?

(d) What is the maximum revenue?
Maximum Revenue =

You can earn partial credit on this problem.