The demand curve for original Iguanawoman comics is given by(448 – p)2(0 sps 448),=150whereis the number of copies the publisher can sell per week if it sets the price at $p.(a) Find the price elasticity of demand when the price is set at $40 per copy. (Round your answer to two decimal places.)(b) Find the price at which the publisher should sell the books to maximize weekly revenue. (Round your answer to the nearest cent.)$(c) What, to the nearest $1, is the maximum weekly revenue the publisher can realize from sales of Iguanawoman comics?$

When p = 40, q = (448 - 40)2 / 150 = (408)2 / 150 = 1109.76 Elasticity = (dq/dp) x (p/q) = (1/150) x…

Answered: price elasticity of demand

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Economics

price elasticity of demand

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The demand curve for original Iguanawoman comics is given by
(448 – p)2
(0 sps 448),
=
150
where
is the number of copies the publisher can sell per week if it sets the price at $p.
(a) Find the price elasticity of demand when the price is set at $40 per copy. (Round your answer to two decimal places.)
(b) Find the price at which the publisher should sell the books to maximize weekly revenue. (Round your answer to the nearest cent.)
$
(c) What, to the nearest $1, is the maximum weekly revenue the publisher can realize from sales of Iguanawoman comics?
$

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