The weekly sales of Honolulu Red Oranges is given by q = 1155 − 21p. where q is the number of oranges sold at the price p dollars per orange. Find E(p)
The weekly sales of Honolulu Red Oranges is given by q = 1155 − 21p. where q is the number of oranges sold at the price p dollars per orange. Find E(p)
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter3: Linear And Nonlinear Functions
Section: Chapter Questions
Problem 26MCQ
Related questions
Question
The weekly sales of Honolulu Red Oranges is given by
q = 1155 − 21p.
where q is the number of oranges sold at the price p dollars per orange. Find E(p)
(a) E(p)=
Calculate the price elasticity of demand when the price is $33 per orange (yes, $33 per orange†). HINT [See Example 1.]
Interpret your answer.
The demand is going _ by % per 1% increase in price at that price level.
(b) Use the elasticity to calculate the price that gives a maximum weekly revenue.
dollars per orange
(c) Find this maximum revenue.
dollars of revenue
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