anndal saes of simarphones over a two year period were approximately 4 -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--- v by about % per 1% increase in price at that price level.
anndal saes of simarphones over a two year period were approximately 4 -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--- v by about % per 1% increase in price at that price level.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 7E: In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price...
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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.
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