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7th Edition

Stefan Waner + 1 other

Publisher: Cengage Learning

ISBN: 9781337274203

Chapter 12.6, Problem 18E

Textbook Problem

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**Exponential Demand Functions** A general exponential demand function has the form

(*A* and *b* nonzero constants).

**a.** Obtain a formula for the price elasticity of demand at a unit price of *p*.

**b.** Obtain a formula for the price that maximizes revenue.

**(a)**

To determine

**To calculate:** The formula of price elasticity of demand if the price is

**Given Information:**

The exponential demand function is of the form

**Formula used:**

Price Elasticity of Demand (

It is defined as the percentage rate of decrease of demand per percentage increase in price, represented by the formula,

And the demand is elastic when

**Calculation:**

The exponential demand function is,

Take derivative of

The price elasticity of demand is calculated as,

**(b)**

To determine

**To calculate:** The formula for price that gives maximum revenue if the exponential demand function is of the form

Finite Mathematics and Applied Calculus (MindTap Course List)

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If you know how fast one quantity is changing and...Ch. 12.5 - In a related rates problem there is no limit to...Ch. 12.5 - If three quantities are related by a single...Ch. 12.5 - The demand and unit price for your stores...Ch. 12.5 - The number N of employees and the total floor...Ch. 12.5 - In solving a related rates problem a key step is...Ch. 12.5 - On a recent exam you were given a related rates...Ch. 12.5 - Transform the following into a mathematical...Ch. 12.5 - If two quantities x and y are related by a linear...Ch. 12.6 - Demand for Oranges The weekly sales of Honolulu...Ch. 12.6 - Demand for Oranges Repeat Exercise 1 for weekly...Ch. 12.6 - Demand for Smartphones Worldwide annual sales of...Ch. 12.6 - Projected Revenue: Smartphones Worldwide annual...Ch. 12.6 - College Tuition An old study of about 1,800 U.S....Ch. 12.6 - Monorail Services The demand for monorail service...Ch. 12.6 - Tissues The consumer demand equation for tissues...Ch. 12.6 - Bodybuilding The consumer demand curve for...Ch. 12.6 - T-Shirts The Physics Club sells E=mc2 T-shirts at...Ch. 12.6 - Comics The demand curve for original Iguanawoman...Ch. 12.6 - E-Readers The demand for Amazons Kindle e-reader...Ch. 12.6 - Monorail Service on Mars The demand for monorail...Ch. 12.6 - Corn In the 1930s the economist Henry Schultz...Ch. 12.6 - Demand for Fried Chicken A fried chicken franchise...Ch. 12.6 - Paint-By-Number The estimated monthly sales of...Ch. 12.6 - Paint-By-Number Repeat Exercise 15 using the...Ch. 12.6 - Linear Demand Functions A general linear demand...Ch. 12.6 - Exponential Demand Functions A general exponential...Ch. 12.6 - Hyperbolic Demand Functions A general hyperbolic...Ch. 12.6 - Quadratic Demand Functions A general quadratic...Ch. 12.6 - Modeling Linear Demand You have been hired as a...Ch. 12.6 - Modeling Linear Demand You have been hired as a...Ch. 12.6 - Modeling Exponential Demand As the new owner of a...Ch. 12.6 - Modeling Exponential Demand Repeat Exercise 23,...Ch. 12.6 - Income Elasticity of Demand: Live Drama The...Ch. 12.6 - Income Elasticity of Demand: Live Concerts The...Ch. 12.6 - Income Elasticity of Demand: Broadband in 2010 The...Ch. 12.6 - Income Elasticity of Demand: Broadband in 2007 The...Ch. 12.6 - Income Elasticity of Demand: Computer Usage in the...Ch. 12.6 - Income Elasticity of Demand: Internet Usage in the...Ch. 12.6 - Price Elasticity of Supply Given a supply equation...Ch. 12.6 - Price Elasticity of Supply Given a supply equation...Ch. 12.6 - Income Elasticity of Demand (based on a question...Ch. 12.6 - College Tuition (from the GRE Economics Test) A...Ch. 12.6 - Complete the following: When demand is inelastic,...Ch. 12.6 - Complete the following: When demand has unit...Ch. 12.6 - Given that the demand q is a differentiable...Ch. 12.6 - Given that the demand q is a differentiable...Ch. 12.6 - Your calculus study group is discussing price...Ch. 12.6 - Another member of your study group claims that...Ch. 12 - In Exercises 18, find all the relative and...Ch. 12 - In Exercises 18, find all the relative and...Ch. 12 - In Exercises 18, find all the relative and...Ch. 12 - In Exercises 18, find all the relative and...Ch. 12 - In Exercises 18, find all the relative and...Ch. 12 - In Exercises 18, find all the relative and...Ch. 12 - In Exercises 18, find all the relative and...Ch. 12 - In Exercises 18, find all the relative and...Ch. 12 - In Exercises 912, find the approximate...Ch. 12 - In Exercises 912, find the approximate...Ch. 12 - In Exercises 912, find the approximate...Ch. 12 - In Exercises 912, find the approximate...Ch. 12 - In Exercises 13 and 14, f is continuous on [3,3],...Ch. 12 - In Exercises 13 and 14, f is continuous on [3,3],...Ch. 12 - In Exercises 15 and 16 the position s of a point...Ch. 12 - In Exercises 15 and 16 the position s of a point...Ch. 12 - In Exercises 1722, sketch the graph of the given...Ch. 12 - In Exercises 1722, sketch the graph of the given...Ch. 12 - In Exercises 1722, sketch the graph of the given...Ch. 12 - In Exercises 1722, sketch the graph of the given...Ch. 12 - In Exercises 1722, sketch the graph of the given...Ch. 12 - In Exercises 1722, sketch the graph of the given...Ch. 12 - Revenue Demand for the latest best-seller at...Ch. 12 - Revenue Demand for The Secret Loves of John O, a...Ch. 12 - Profit Taking into account storage and shipping,...Ch. 12 - Profit Taking into account storage and shipping,...Ch. 12 - Office Space Although still a sophomore at...Ch. 12 - Recreation Space As a result of complaints by the...Ch. 12 - Box Design The sales department at...Ch. 12 - Box Redesign The sales department at...Ch. 12 - Sales OHaganBooks.com modeled its weekly sales...Ch. 12 - Sales The quarterly sales of OHagan oPods...Ch. 12 - Chance Encounter Marjory Duffin is walking north...Ch. 12 - Company Logos OHaganBooks.coms website has an ani-...Ch. 12 - Elasticity of Demand (Compare Exercise 23.) Demand...Ch. 12 - Elasticity of Demand (Compare Exercise 24.) Demand...Ch. 12 - Elasticity of Demand Last year OHaganBooks.com...Ch. 12 - Elasticity of Demand JungleBooks.com (one of...

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