Worldwide annual sales of smartphones over a two year period were approximately q = -5p + 3,030 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 $365 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. The demand was going down v by about % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. 2$ What would have been the resulting annual revenue? (Round your answer to two decimal places.) $ 455.6 X billion
Worldwide annual sales of smartphones over a two year period were approximately q = -5p + 3,030 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 $365 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. The demand was going down v by about % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. 2$ What would have been the resulting annual revenue? (Round your answer to two decimal places.) $ 455.6 X billion
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
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Question
Worldwide annual sales of smartphones over a two year period were approximately q=-5p+3030 million phones at a selling price of $p per phone.
(a) Obtain a formula for the price elasticity of demand E.
(b) in one of the years the actual selling price was $365 per phone. What was the corresponding price elasticity of demand ?
The demand was going down by about _____% per 1% increase in price at the price level.
(c)Use your formula for E to determine the selling price that would’ve resulted in the largest annual revenue.
$______
What would’ve 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 = -5p + 3,030 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 $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
v by about
% per 1% increase in price at that price level.
(c) Use your formula forE 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.)
$ 455.6
X billion](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F577fc8a5-9a20-4139-b44d-30124c6f9476%2F48890d58-ab3c-474a-92da-74cc11bebc94%2Fn4wnqd7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Worldwide annual sales of smartphones over a two year period were approximately q = -5p + 3,030 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 $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
v by about
% per 1% increase in price at that price level.
(c) Use your formula forE 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.)
$ 455.6
X billion
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