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Worldwide annual sales of smartphones over a five year period were projected to be approximately q = -10p + 4,380 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one year the actual selling price was $283 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. (Round your answer to two decimal places.) The demand was going down Vv by about % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. $ | What, to the nearest $10 million, would have been the resulting annual revenue? $1 million

Worldwide annual sales of smartphones over a five year period were projected to be approximately q = -10p + 4,380 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one year the actual selling price was $283 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. (Round your answer to two decimal places.) The demand was going down Vv by about % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. $ | What, to the nearest $10 million, would have been the resulting annual revenue? $1 million

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.3: The Natural Exponential Function
Problem 40E
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Worldwide annual sales of smartphones over a five year period were projected to be approximately q = -10p + 4,380 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one year the actual selling price was $283 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. (Round your answer to two decimal places.) The demand was going down by about % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. $ What, to the nearest $10 million, would have been the resulting annual revenue? $ million
Transcribed Image Text:Worldwide annual sales of smartphones over a five year period were projected to be approximately q = -10p + 4,380 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one year the actual selling price was $283 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. (Round your answer to two decimal places.) The demand was going down by about % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. $ What, to the nearest $10 million, would have been the resulting annual revenue? $ million
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