The demand curve for original Iguanawoman comics is given by
q=(343-p)^2/100

(0

Question

The demand curve for original Iguanawoman comics is given by
q=(343-p)^2/100

(0<p<343)

where q is the number of copies the publisher can sell per week if it sets the price at $p.

(a) Find the price elasticity of demand when the price is set at $33 per copy. (Round your answer to two decimal places.)

(b) Find the price at which the publisher should sell the books in order to maximize weekly revenue. (Round your answer to the nearest cent.)

(c) What, to the nearest $1, is the maximum weekly revenue the publisher can realize from sales of Iguanawoman comics?

dumbcow · Answer

haha an econ question.
ok price elasticity is looking at the slope of the demand curve to see how responsive the price is to a change in quantity.
E = price/quantity * q'(p)
p = 33 then q = 961
derivative of function using chain rule 
-> q'(p) = -(343-p)/50 
-> E = (33/961)*-(343-33)/50 = -0.2129

dumbcow · Answer

for part b) revenue is price * quantity
-> R(p) = p*(343-p)^2/100
to max revenue differentiate using product rule and set equal to 0
R'(p) = (343-p)^2/100 + -p(343-p)/50 = 0
solve for p
-> p = 343/3
For part c) plug p=343/3 back into revenue function

anonymous · Answer

didn't work :/