T-Shirts The Physics Club sells E = mc2. T-shirts at the local flea market. Unfortunately, the club’s previous administration has been losing money for years, so you decide to do an analysis of the sales. A quadraticregression based on old sales data reveals the following demand equation for the T-shirts: q = −2p + 33p (9 ≤ p ≤ 15) 2 Here, p is the price the club charges per T-shirt and q is the number it can sell each day at the flea market. a. Obtain a formula for the price elasticity of demand for E = mc2 T-shirts. b. Compute the elasticity of demand if the price is set at $10 per shirt. Interpret the result. c. How much should the Physics Club charge for the T-shirts to obtain the maximum daily revenue? What will this revenue be?
T-Shirts The Physics Club sells E = mc2.
T-shirts at the local flea market. Unfortunately, the club’s previous administration has been losing money for years, so you decide to do an analysis of the sales. A quadratic
regression based on old sales data reveals the following demand equation for the T-shirts: q = −2p + 33p (9 ≤ p ≤ 15) 2
Here, p is the price the club charges per T-shirt and q is the number it can sell each day at the flea market. a. Obtain a formula for the price elasticity of demand for E = mc2 T-shirts. b. Compute the elasticity of demand if the price is set at $10 per shirt. Interpret the result. c. How much should the Physics Club charge for the T-shirts to obtain the maximum daily revenue? What will this revenue be?
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