Question

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

q = 99e^P-3p^2/2

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 ¥3.

(b) The demand is going down by ______% per 1% increase in price at that price level.

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

(d) Approximately how many paint-by-number sets will be sold per month at the price in part (c)?