The Physics Club sells E = mc? T-shirts at the local flea market. Unfortunately, the club's previous administration has beenlosing money for years, so you decide to do an analysis of the sales. A quadratic regression based on old sales data revealsthe following demand equation for the T-shirts.9 =-2p2 + 33p(9 < ps 15)Here, p is the price the club charges per T-shirt, and g is the number it can sell each day at the flea market.(a) Obtain a formula for the price elasticity of demand for E = mc2 T-shirts.E =(b) Compute the elasticity of demand if the price is set at $9 per shirt. (Round your answer to two decimal places.)Interpret the result.The demand for E = mc2 T-shirts is going down vby about% per 1% increase in the price.(c) How much should the Physics Club charge for the T-shirts to obtain the maximum daily revenue?$What will the revenue be?

Price elasticity of demand is the change in quantity demanded of goods and services with respect to…

(a) Obtain a formula for the price elasticity of demand for E = mc² T-shirts. E = (b) Compute the elasticity of demand if the price is set at $9 per shirt. (Round your answer to two decimal places.) Interpret the result. The demand for E = mc² T-shirts is going down v by about % per 1% increase in the price. (c) How much should the Physics Club charge for the T-shirts to obtain the maximum daily revenue? 2$ What will the revenue be?

(a) Obtain a formula for the price elasticity of demand for E = mc² T-shirts. E = (b) Compute the elasticity of demand if the price is set at $9 per shirt. (Round your answer to two decimal places.) Interpret the result. The demand for E = mc² T-shirts is going down v by about % per 1% increase in the price. (c) How much should the Physics Club charge for the T-shirts to obtain the maximum daily revenue? 2$ What will the revenue be?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 1.1CE

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