Worldwide annual sales of smartphones over a two year period were approximately g = -4p + 3,010 million phones at a selling price of sp per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one of the years the actual selling price was $305 per phone, What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. The demand was going -Select-- v by about 9% per 19% 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. $4 What would have been the resulting annual revenue? (Round your answer to two decimal places.) 24 billion 9:59 AM
Worldwide annual sales of smartphones over a two year period were approximately g = -4p + 3,010 million phones at a selling price of sp per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one of the years the actual selling price was $305 per phone, What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. The demand was going -Select-- v by about 9% per 19% 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. $4 What would have been the resulting annual revenue? (Round your answer to two decimal places.) 24 billion 9:59 AM
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter5: A Survey Of Other Common Functions
Section5.1: Logistic Functions
Problem 21E: Eastern Pacific Yellowfin Tuna Studies to fit a logistic model to the Eastern Pacific yellowfin tuna...
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Question
Worldwide annual sales of Smart phones over a two year period were approximately q=-4p+3010 million phones at a selling price of $p per phone.
(a) obtain a formula for the price elasticities of demand E.
E=______
(b) in one of the years the actual selling price was $305 per phone. What was the corresponding price  elasticity of demand?
E=______
The demand was going (up/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 would’ve been the resulting annual revenue? (Round your answer to two decimal places.)
$_____billion
Transcribed Image Text:Worldwide annual sales of smartphones over a two year period were approximately g = -4p + 3,010 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 of the years the actual selling price was $305 per phone, What was the corresponding price elasticity of demand? (Round your answer to two decimal places.)
E =
Interpret your answer.
96 per 196 increase in price at that price level.
The demand was going --Select-- v by about
(c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue.
What would have been the resulting annual revenue? (Round your answer to two decimal places.)
billion
$4
9:59 AM
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