(c) Find the optimal price and the maximum revenue.The optimal price:dollarsThe maximimum revenue:dollars(d) Sketch the graph of the parabola that is used in solving this problem. Label the vertex of theparabola. Indicate x-intercepts on paper, scan/take a picture or your work and upload it into spacebelow. The marketing department at XYZ Company has found that, when Product ABC is sold at a price of pdollars per unit, the number x of Product ABC sold is given by the demand equation260 — 13р.(a) Find the model that expresses the revenue R as a function of the price p. (Note that R = xp, theunit price times the number of units sold)R(p) =(b) Explain how would you find the price that will maximize the revenue (the optimal price), and themaximum revenue. Use the box below to type your answer.

Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Answered: The marketing department at XYZ Company…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

19) A beverage company works out a demand function for its sale of soda and finds it to be q-D(x)=3300-26x, where q- the quantity of sodas sold when the price per can, in cents, is x. At a price of 118 cents per can, will a small increase in price cause the total revenue to increase, decrease, or stay the same? A) Decrease B) Stay the same C) Increase 19)
Handwritten solution not required correct answer will get instant upvote.
For the demand function q = D(p) = 272- p, a) The elasticity b) The elasticity at p = 112, stating whether the demand is elastic, inelastic or has unit elasticity c) The value(s) of p for which total revenue is a maximum (assume thatp is in dollars) find the following. %3D %3D a) Find the equation for elasticity. E(p) = b) Find the elasticity at the given price, stating whether the demand is elastic, inelastic or has unit elasticity. E(112) = (Simplify your answer. Type an integer or a fraction.) Is the demand elastic, inelastic, or does it have unit elasticity? elastic inelastic unit elasticity c) Find the value(s) of p for which total revenue is a maximum (assume that p is in dollars). $ (Round to the nearest cent l lse a comma to senarate anCIwers as Needed )
Suppose that the price per unit p as a function of the demanda is p = 478.8 -0.9x. (a) Calculate the price elasticity of demand when x = 132. n = -2.44, therefore the demand is elastic (b) Calculate the price elasticity of demand when x = 425. n = -0.202 therefore the demand is inelastic (c) Find the demand that gives unit elasticity. x = 266.0 ✓
Tutorial Exercise Worldwide annual sales of smartphones in over a 5 year period were projected to be approximately q = −10p + 4,540 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. (b) In one particular year the actual selling price was $277 per phone. What was the corresponding price elasticity of demand? Interpret your answer. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. What, to the nearest $10 million, would have been the resulting annual revenue? Step 1 (a)Obtain a formula for the price elasticity of demand E. Recall that the price elasticity of demand E is the percentage rate of decrease of demand divided by the percentage increase of price, given by the formula. E = − dq dp · p q We are already given the formula q = −10p + 4,540 for the demand of smartphones (in millions). First, we find the derivative…
4x + 500 10x +9 the number of plants sold per day when the price is x dollars per plant. A garden shop determines the demand function q = D(x) = (a) Find the elasticity. (b) Find the elasticity when x=3. (c) At $3 per plant, will a small increase in price cause the total revenue to increase or decrease? (a) The elasticity is during early summer for tomato plants where q is M Ir
4x+200 A garden shop determines the demand function q = D(x) = 30x+9 during early summer for tomato plants where q is the number of plants sold per day when the price is x dollars per plant. (a) Find the elasticity. (b) Find the elasticity when x = 2. (c) At $2 per plant, will a small increase in price cause the total revenue to increase or decrease? (a) The elasticity is
the consumer demand for a given product (where x represents number of units and “p” represents price is money) given by the function: x=(45-3p)^2 a) using the concept of elasticity of demand, determine the price that the product should be sold at to maximize revenue. round to the nearest 10th b) what is the elasticity of demand (ecp) ?
A sporting goods store has estimated the demand for a popular brand of running shoes as given in the table below. Price per unit (OMR) Shoe sales per week 60 100 50 200 40 300 30 400 20 500 10 600 Graphically present the table to get a demand curve. If the store charges a price of 50 OMR, then increases this price to 60 OMR, estimate price elasticity of demand. Analyze the total revenue before and after the price change.
The demand equation for the Roland portable hair dryer is given as follows where x (measured in units of a hundred) is the quantity demanded per week and p is the unit price in dollars. (225 − p²) (0 ≤p ≤15) x= (a) Is the demand elastic or inelastic when p = 6? elastic inelastic Is the demand elastic or inelastic when p = 11? elastic inelastic (b) When is the demand unitary? (Round your answer to two decimal places.) (Hint: Solve E(p) = 1 for p.) p = (c) If the unit price is lowered slightly from $11, will the revenue increase or decrease? increase decrease (d) If the unit price is increased slightly from $6, will the revenue increase or decrease? increase decrease
Please no hand written solution
a) The demand function for a product is p = 60 3-9/15) where q is the number of units and p is the price of one unit. At what price will the demand be 15 units? How many units will be demanded if the price is $41.60?

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS