Worldwide annual sales on smart phones over a two year period were approximately q=-5p+3090 million phones at the 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 $355 per phone. What was the corresponding price elasticity of demand?E=______The demand is going (up/down) by about _____% per 1% increase in that price level. Worldwide annual sales of smartphones over a two year period were approximately q = -5p + 3,090 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 $355 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--by about% per 1% increase in price at that price level.

{"Elasticity of demand"} ED of a good is the response in the demand(DD) of the commodity as the…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Worldwide annual sales on smart phones over a two year period were approximately q=-5p+3090 million phones at the 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 $355 per phone. What was the corresponding price elasticity of demand? E=______ The demand is going (up/down) by about _____% per 1% increase in that price level.

Worldwide annual sales of smartphones over a two year period were approximately q = -5p + 3,090 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 $355 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--
by about
% per 1% increase in price at that price level.

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