The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 97e-3p/2, where q is the demand in monthly sales and p is the retail price in hundred s set at $400. (a) Determine the price elasticity of demand E when the retail price i x E= Interpret your answer. The demand is going down by X% per 1% increase in price at that price level. Thus, a large price [decrease is advised. (b) At what price will revenue be a maximum? (Round your answer to the nearest integer.) x yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) xpaint-by-number sets per month

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Chapter1: Making Economics Decisions
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The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 97e° -3p²/2, where q is the demand in monthly sales and p is the retail price in hundreds of yen.
(a) Determine the price elasticity of demand E when the retail price is set at ¥ 400.
E =
X
Interpret your answer.
The demand is going down ✔✔✔ by
X% per 1% increase in price at that price level. Thus, large price decrease ✓
(b) At what price will revenue be a maximum? (Round your answer to the nearest integer.)
X yen
(c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.)
paint-by-number sets per month
is advised.
Transcribed Image Text:The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 97e° -3p²/2, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥ 400. E = X Interpret your answer. The demand is going down ✔✔✔ by X% per 1% increase in price at that price level. Thus, large price decrease ✓ (b) At what price will revenue be a maximum? (Round your answer to the nearest integer.) X yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) paint-by-number sets per month is advised.
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