Question

The consumer demand equation for tissues is given by: q = (106 − 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 $32. (Round your answer to three decimal places.) E = ____?

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

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

(c) Approximately how many cases of tissues would be demanded at that price? ____ cases per week?

Answer 1

got to love economics :)

Answer 2

hmmmm the elasticity would be the change in quantity demanded divided by the change in price

Answer 3

but i see no original price or quantity

Answer 4

quantity = 5476 at $32

Answer 5

5476/32 = 171.188

Answer 6

so a. e= 171.188 i believe

Answer 7

1% of $32 is $.32

Answer 8

5476/32.32 = 177.785

Answer 9

5476/32.64 = 167.785

Answer 10

5476/32.32 = 169.431 oops