The Physics Club sells E = mc2 T-shirts at the local flea market. Unfortunately, the club's previous administration has been losing money for years, so you decide to do an analysis of the sales. A quadratic regression based on old sales data reveals the following demand equation for the T-shirts. q = −2p2 + 33p (9 ≤ p ≤ 15) Here, p is the price the club charges per T-shirt, and q is the number it can sell each day at the flea market. (a)Obtain a formula for the price elasticity of demand for E = mc2 T-shirts. (b)Compute the elasticity of demand if the price is set at $10 per shirt. (Round your answer to two decimal places.) (c)How much should the Physics Club charge for the T-shirts to obtain the maximum daily revenue?
The Physics Club sells E = mc2 T-shirts at the local flea market. Unfortunately, the club's previous administration has been losing money for years, so you decide to do an analysis of the sales. A quadratic regression based on old sales data reveals the following demand equation for the T-shirts. q = −2p2 + 33p (9 ≤ p ≤ 15) Here, p is the price the club charges per T-shirt, and q is the number it can sell each day at the flea market. (a)Obtain a formula for the price elasticity of demand for E = mc2 T-shirts. (b)Compute the elasticity of demand if the price is set at $10 per shirt. (Round your answer to two decimal places.) (c)How much should the Physics Club charge for the T-shirts to obtain the maximum daily revenue?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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The Physics Club sells E = mc2 T-shirts at the local flea market. Unfortunately, the club's previous administration has been losing money for years, so you decide to do an analysis of the sales. A quadratic regression based on old sales data reveals the following demand equation for the T-shirts.
q = −2p2 + 33p (9 ≤ p ≤ 15)
Here, p is the price the club charges per T-shirt, and q is the number it can sell each day at the flea market.
(a)Obtain a formula for the price elasticity of demand for E = mc2 T-shirts.
(b)Compute the elasticity of demand if the price is set at $10 per shirt. (Round your answer to two decimal places.)
(c)How much should the Physics Club charge for the T-shirts to obtain the maximum daily revenue?
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