**Weekly Sales of Honolulu Red Oranges**The weekly sales of Honolulu Red Oranges is described by the equation:\[ q = 1026 - 19p. \]Here, $ q $ represents the number of oranges sold at the price $ p $ dollars per orange. Determine $ E(p) $.\[ E(p) = \underline{\hspace{100px}} \]**Price Elasticity of Demand Calculation**Calculate the price elasticity of demand when the price is $36 per orange (yes, $36 per orange❣). *HINT [See Example 1.]*\[ \underline{\hspace{100px}} \]**Interpretation of the Answer**The demand is going \[ \text{down} \, \checkmark \, \text{by} \, \underline{\hspace{50px}} \, \text{% per 1% increase in price at that price level.} \]**Revenue Optimization**Use the elasticity to determine the price that maximizes weekly revenue.\[ \underline{\hspace{100px}} \, \text{dollars per orange} \]**Maximum Revenue Calculation**Find the maximum revenue.\[ \underline{\hspace{100px}} \, \text{dollars of revenue} \]

Price elasticity of demand depicts how much consumer responds with the change in price.

The weekly sales of Honolulu Red Oranges is given by q = 1026 – 19p. where q is the number of oranges sold at the price p dollars per orange. Find E(p) E(p) = Calculate the price elasticity of demand when the price is $36 per orange (yes, $36 per oranget). HINT [See Example 1.] Interpret your answer. The demand is going down v by x % per 1% increase in price at that price level. Use the elasticity to calculate the price that gives a maximum weekly revenue. x dollars per orange Find this maximum revenue. X dollars of revenue

The weekly sales of Honolulu Red Oranges is given by q = 1026 – 19p. where q is the number of oranges sold at the price p dollars per orange. Find E(p) E(p) = Calculate the price elasticity of demand when the price is $36 per orange (yes, $36 per oranget). HINT [See Example 1.] Interpret your answer. The demand is going down v by x % per 1% increase in price at that price level. Use the elasticity to calculate the price that gives a maximum weekly revenue. x dollars per orange Find this maximum revenue. X dollars of revenue

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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