The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 98e-3p² + P, 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 $200. E = x Interpret your answer. The demand is going down by % 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? hundred 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
The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 98e-3p² + P, 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 $200. E = x Interpret your answer. The demand is going down by % 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? hundred 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
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter8: Functions
Section8.7: Direct And Inverse Variation
Problem 36PS
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Transcribed Image Text:The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 98e-3p² + P, where g 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 ¥ 200.
E =
x
Interpret your answer.
The demand is going down
by
% 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?
5
hundred 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
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