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A third-party Amazon seller who has acquired a supply of single rolls of toilet paper has...

A third-party Amazon seller who has acquired a supply of single rolls of toilet paper has been watching prices and has determined that the demand function is

D(p)=(p+1500)/(0.03p^3+12)

Where p is the price of a roll of toilet paper and D(p) is the number sold per day.

a. State the elasticity function.

b. What is the elasticity at a price point of $10 per roll?

c. What price will yield the greatest revenue? $

d. How many rolls will be sold at the price which yields the greatest revenue. Round to the nearest whole number of rolls.

e. What is the maximum revenue?

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Expert Solution

milcah answered 1 year ago
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