Worldwide annual sales of smartphones over a two year period were approximately q = −4p + 3,030 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = 4p/3030−4p (b) In one of the years the actual selling price was $365 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 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 have been the resulting annual revenue? (Round your answer to two decimal places.) $= billion
Worldwide annual sales of smartphones over a two year period were approximately q = −4p + 3,030 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = 4p/3030−4p (b) In one of the years the actual selling price was $365 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 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 have been the resulting annual revenue? (Round your answer to two decimal places.) $= billion
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
Chapter2: Graphical And Tabular Analysis
Section2.5: Inequalities
Problem 2TU
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Worldwide annual sales of smartphones over a two year period were approximately
q = −4p + 3,030
million phones at a selling price of $p per phone.(a) Obtain a formula for the price elasticity of demand E.
E = 4p/3030−4p
(b) In one of the years the actual selling price was $365 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 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 have been the resulting annual revenue? (Round your answer to two decimal places.)
$= billion
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