The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q =...

The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 105e^{p −
3p²/2},

where q is the demand in monthly sales and p is the retail price in yen.

(a) Determine the price elasticity of demand E when the retail price is set at 4 yen.
E =
Interpret your answer.

The demand is going ? up down by % per 1% increase in price at that price level. Thus, a large price ? increase decrease is advised.

(b) At what price will revenue be a maximum? (Round your answer to two decimal places.)
yen

(c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.)

paint-by-number sets per month

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milcah answered 2 years ago

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