The demand for ACME Q-bits is given by the function q = f(Y,p), where %3D

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter3: Functions
Section3.3: More On Functions; Piecewise-defined Functions
Problem 99E: Determine if the statemment is true or false. If the statement is false, then correct it and make it...
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The demand for ACME Q-bits is given by the function q = f(Y,p), where
• q = monthly demand for ACME Q-bits (measured in 1000s of Q-bits)
• Y= average monthly income in the Q-bit market (measured in $1000s)
•p = price/Q-bit that ACME sets (measured in dollars).
When average monthly income is $4500 and ACME's price is $35...
• q = 22,
aq/əY = 0.77
aq/ap = - 0.64
If average monthly income increases to $4700, by approximately how much can ACME increase their
price while keeping demand for the product fixed at q = 22?
Hint: Use linear approximation.
Transcribed Image Text:The demand for ACME Q-bits is given by the function q = f(Y,p), where • q = monthly demand for ACME Q-bits (measured in 1000s of Q-bits) • Y= average monthly income in the Q-bit market (measured in $1000s) •p = price/Q-bit that ACME sets (measured in dollars). When average monthly income is $4500 and ACME's price is $35... • q = 22, aq/əY = 0.77 aq/ap = - 0.64 If average monthly income increases to $4700, by approximately how much can ACME increase their price while keeping demand for the product fixed at q = 22? Hint: Use linear approximation.
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