Shark Inc. has determined that demand for its newest netbook model is given by lnq-3lnp+0.004p=7, where q is the number of netbooks Shark can sell at a price of p dollars per unit. Shark has determined that this model is valid for prices p≥100. You may find it useful in this problem to know that elasticity of demand is defined to be E(p) = (dq/dp)(p/q)

Find E(p)
Your answer should only be in terms of p.

What price will maximize revenue. If the price is less than 100, write 'NA'.

Thanks!

Question

Shark Inc. has determined that demand for its newest netbook model is given by lnq-3lnp+0.004p=7, where q is the number of netbooks Shark can sell at a price of p dollars per unit. Shark has determined that this model is valid for prices p≥100. You may find it useful in this problem to know that elasticity of demand is defined to be E(p) = (dq/dp)(p/q)

Find E(p)
Your answer should only be in terms of p. 

What price will maximize revenue. If the price is less than 100, write 'NA'. 

Thanks!

freckles · Answer

So have you found dq/dp?

miracrown · Answer

We can start by differentiating to get dp/dq

miracrown · Answer

This is what we're given:
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