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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![**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.
\[ \underline{\hspace{100px}} \, \text{dollars of revenue} \]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d9af5e6-9fd3-4a9b-a9c8-3b97e891ab83%2Fa89a12e7-cd13-467d-adac-c00ed3f666dd%2Fd9k13i_processed.png&w=3840&q=75)
Transcribed Image Text:**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.
\[ \underline{\hspace{100px}} \, \text{dollars of revenue} \]
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