Worldwide annual sales of smartphones over a five year period were projected to be approximately q = -10p + 4,340 million phones at a selling price of $/ (a) Obtain a formula for the price elasticity of demand E. 10p 4340 – 10p E = (b) In one year the actual selling price was $283 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal E = 1.87 Interpret your answer. (Round your answer to two decimal places.) The demand was going down by about 1.87 % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. $ 217 What, to the nearest $10 million, would have been the resulting annual revenue? million
Worldwide annual sales of smartphones over a five year period were projected to be approximately q = -10p + 4,340 million phones at a selling price of $/ (a) Obtain a formula for the price elasticity of demand E. 10p 4340 – 10p E = (b) In one year the actual selling price was $283 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal E = 1.87 Interpret your answer. (Round your answer to two decimal places.) The demand was going down by about 1.87 % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. $ 217 What, to the nearest $10 million, would have been the resulting annual revenue? million
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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Transcribed Image Text:Worldwide annual sales of smartphones over a five year period were projected to be approximately q = -10p + 4,340 million phones at a selling price of $
(a) Obtain a formula for the price elasticity of demand E.
10p
4340 – 10p
E =
(b) In one year the actual selling price was $283 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal
E = 1.87
Interpret your answer. (Round your answer to two decimal places.)
The demand was going down
by about 1.87
% per 1% increase in price at that price level.
(c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue.
$ 217
What, to the nearest $10 million, would have been the resulting annual revenue?
million
%24
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