Managerial economist estimates the price-quantity relationship for Textile Company to be p= 40-4q a. At what output rate demand is unitary elastic? b. Over what range of output demand is elastic? c. Over what ranges of the output of demand are inelastic?

So unit elastic at q = 5

inelastic above 5

and elastic below 5

Explanation:

The elasticity is determianted by the marginal revenue.

Our first goal is to find the marginal revenue function

p = 40 - 4q

total revenue(TR)  =  quantity times price

q x (40 - 4q) = -4q^2 +40q

marginal revenue TR(q)/d(q)  = -8q + 40

Now, with this fuction the economic analisys states that a demand is unit elastic when marginal revenue is zero.

It will be inelastic below zero and elastic above zero

MR will be zero when q = 5

-8(5) + 40 = 0

As quantity increases the demand will be inelastic

while

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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answerjointly by the fed and by the behavior of individuals who hold money and of banks in which money is held;