Question

Please help for this elasticity problem!
Demand Curve is given by
q = (470 - p)^2/100 (0 <= p <= 470)
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 $31 per copy
(b) Find the price at which the publisher should sell the books in order to maximize weekly revenue
(c) What, to the nearest $1, is the maximum weekly revenue the publisher can realize from sales

Answer 1

ahh business D:

Answer 2

Yes, unfortunately! I really need help with this particular problem.

Answer 3

so set the p=31, and what do u get for q?

Answer 4

1927.21?

Answer 5

kay so thats q, and q is how many copies he sells per week

Answer 6

so he gets to sell 1927.21 copies per week at $31 dollars a copy, how much money is that a week

Answer 7

59743.51?

Answer 8

yep sounds about right

Answer 9

okay now for part b)

Answer 10

notice its not the q u want to maximise but, q*p

Answer 11

q is just the number you sell that week
q*p is the revenue you get that week

Answer 12

q*p = (470 - p)^2/100 *p
so maximize this function

Answer 13

Revenue = q*p = (470 - p)^2/100 *p

Maximizing Revenue
d/dp(Revenue)=d/dp( (470 - p)^2/100 *p)

Answer 14

hello?

Answer 15

Sorry, for part a) the answer I put was not correct. :/

Answer 16

oh okay what does price elasticity mean

Answer 17

by the word itself im gonna assume how the price is changing with respect to demand

Answer 18

or maybe how the revenue is fluctuating around 31 dollars

Answer 19

dQ/dp @ p=31 =?

Answer 20

q = (470 - p)^2/100
dq/dp=-2(470-p)/100
dq/dt @ p=31 : -2(470-31)/100=-2*4.39=-8.78