Question

5. - 5 POINTS WANEFMAC7 12.6.007. MY NOTES AS The consumer demand equation for tissues is given by 9 = (98 - p), where p is the price per case of tissues and is the demand in weekly sales. (a) Determine the price elasticity of demand E when the price is set at $26. (Round your answer to three decimal places.) Interpret your answer. The demand is going? by % per 1% Increase in price at that price level. (b) At what price should tissues be sold to maximize the revenue? (Round your answer to the nearest cent.) (c) Approximately how many cases of tissues would be demanded at that price? (Round your answer to the nearest whole number.) cases per week

Answer 1

ay 12 (98 p)2 Endome N 72. ] At Pz 26 2-1-2 L x 26 98 - 26 10.422 The demand is going Clown by [0.722 % 6) R 2 Pq N & R 2 P (98-P) 2 dr , (98-P)2 + P(98–P)(-2) z (98-P) [98-P-2P] 20.

(98-P) (98-3P) 20 3P ²_392 P +9604 2o. IP z 98 & 232.607 At price 1832.67 Revenue will be man. s) 9298 - 32.67) 2 4 268.0089 So, the quantity at a price of $32.67 is [4268 units.

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