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
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ISBN:9780079039897
Author:Carter
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Chapter3: Linear And Nonlinear Functions
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Problem 26MCQ
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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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