Question

In: Math

The consumer demand equation for tissues is given by q = (100 − p)2, where p...

The consumer demand equation for tissues is given by

q = (100 − 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 $34. (Round your answer to three decimal places.)
E =

Interpret your answer.

The demand is going ? up down by % per 1% increase in price at that price level.

(b) At what price should tissues be sold to maximize the revenue? (Round your answer to the nearest cent.)
$

(c) Approximately how many cases of tissues would be demanded at that price? (Round your answer to the nearest whole number.)
cases per week

Solutions

Expert Solution

we have

the elasticity of the demand is,

put p = 34,

here E > 1, elasticity of demand is elastic.

The demand is going down by 1.030 % per 1% increase in price at that price level.

E = 1 for the maximum revenue,

the demand is,

put p = 33.33,

milcah answered 1 year ago

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