Question

O-14 points WaneFMAC6 12.6.003. 0/6 Submissions Used My Notes (103 - p)2, where p is the price per case tissues and q the demand in weekly sales. The consumer demand equation for tissues given by q (a) Detemine the price elasticity of demand E when the price set at $33. (Round your answer to three decimal places.) E= Interpret your answer The demand is going by per 1% increase in price at that price level. (b) At what price should tissues be sold in order maximize the revenue? (Round your answer to the nearest cent.) (c) Approximately how many cases f tissues would be demanded at that price? (Round your answer to the nearest whole number.) cases per week Read h Talk to a Tutor Need Help? O -1 points WaneFMAC6 12.6.004. 0/6 Submissions Used My Notes 2p)2, where p is the price per dumbbell, and q is the demand in weekly sales. Find the price The consumer demand curve for Professor Stefan Schwarzenegger's dumbbells is given by q (90 mad u Professor Schwarzenegger should charge for his dumbbelle in maximize revenue, (Round vour answr to the neare t.) Need Help? Talk to a Tutor Read It

Answer 1

The consumer demand equation for tissues is given by q (103 p)2, where p is the price per case of tissues and q is the demand in weekly sales. (a) Determine the price elasticity of demand E when the price is set at $33. (Round your answer to three decimal places.) E = Ans. The formula for the price elasticity of demand E is given by E P da g фр Now q (103-p) da 2 (103-p) dp _ p S33 The price elasticity of demand E when the price is set at $33 is given by, E P da g dр 33 66 <2 (103-p)= 66 - 0.943 (103-33) 70 (103-p) Interpret your answer. The demand is going up by 94.3 per 1% increase in price at that price level. (b) At what price should tissues be sold in order to maximize the revenue? (Round your answer to the nearest cent.) Ans.

q(103-p) R pq p(103-p) dR (103-p)-2p(103-p) 0 dp (103-p) (103-3p) = 0 103-p 0p 103 103 =34.3 103-3p 0p For p 103: R p(103-103) 0Minimum For p 34.3: R 34.3 (103-34.3) = S161,885.5 Maximum (c) Approximately how many cases of tissues would be demanded at that price? (Round your answer to the nearest whale number.) cases per week Ans. q(103 Let p 34.3 q(103-34.3) 4715