The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 97e-3p/2, where q is the demand in monthly sales and p is the retail price in hundred s set at $400. (a) Determine the price elasticity of demand E when the retail price i x E= Interpret your answer. The demand is going down by X% per 1% increase in price at that price level. Thus, a large price [decrease is advised. (b) At what price will revenue be a maximum? (Round your answer to the nearest integer.) x yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) xpaint-by-number sets per month

The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 97e-3p/2, where q is the demand in monthly sales and p is the retail price in hundred s set at $400. (a) Determine the price elasticity of demand E when the retail price i x E= Interpret your answer. The demand is going down by X% per 1% increase in price at that price level. Thus, a large price [decrease is advised. (b) At what price will revenue be a maximum? (Round your answer to the nearest integer.) x yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) xpaint-by-number sets per month

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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