At one McDonald's restaurant, the daily demand for cheeseburgers is given by-1= ) *200(1+0.75p²2009 =1+0.75p2where p is the price (in dollars) for a cheeseburger, and q is the number ofcheeseburgers sold by the store in a single day.7 a.dWhat is the derivative of q? (do not simplify)b.4cheeseburgers are priced at p dollars each?What is the formula for the price elasticity of demand whenUsing the price elasticity of demand formula from part b, how muchC.Should this McDonalds charge for a cheeseburger to maximize daily revenue? Pleasegive a one or two sentence summary on how you found this answer.

Answer: Given, Demand function: q=2001+0.75p2-1 (a). To find the derivative of q let us derivate q…

At one McDonald's restaurant, the daily demand for cheeseburgers is given by -1 200 = 200(1+0.75p² ) 1+0.75p² where p is the price (in dollars) for a cheeseburger, and q is the number of cheeseburgers sold by the store in a single day. 2 a.d What is the derivative of q? (do not simplify) b. What is the formula for the price elasticity of demand when cheeseburgers are priced at p dollars each? Using the price elasticity of demand formula from part b, how much С. should this McDonalds charge for a cheeseburger to maximize daily revenue? Please give a one or two sentence summary on how you found this answer.

At one McDonald's restaurant, the daily demand for cheeseburgers is given by -1 200 = 200(1+0.75p² ) 1+0.75p² where p is the price (in dollars) for a cheeseburger, and q is the number of cheeseburgers sold by the store in a single day. 2 a.d What is the derivative of q? (do not simplify) b. What is the formula for the price elasticity of demand when cheeseburgers are priced at p dollars each? Using the price elasticity of demand formula from part b, how much С. should this McDonalds charge for a cheeseburger to maximize daily revenue? Please give a one or two sentence summary on how you found this answer.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.5P

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