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Worldwide annual sales of smartphones over a two year period were approximately q = -5p + 3,030 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one of the years the actual selling price was $365 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. The demand was going down v by about % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. 2$ What would have been the resulting annual revenue? (Round your answer to two decimal places.) $ 455.6 X billion

Worldwide annual sales of smartphones over a two year period were approximately q = -5p + 3,030 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one of the years the actual selling price was $365 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. The demand was going down v by about % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. 2$ What would have been the resulting annual revenue? (Round your answer to two decimal places.) $ 455.6 X billion

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...
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Worldwide annual sales of smartphones over a two year period were approximately q=-5p+3030 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. (b) in one of the years the actual selling price was $365 per phone. What was the corresponding price elasticity of demand? The demand was going down by about _____% per 1% increase in price at the price level. (c)Use your formula for E to determine the selling price that would’ve resulted in the largest annual revenue. $______ What would’ve been the resulting annual revenue? (Round your answer to two decimal places.) $______billion
Worldwide annual sales of smartphones over a two year period were approximately q = -5p + 3,030 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one of the years the actual selling price was $365 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. The demand was going down v by about % per 1% increase in price at that price level. (c) Use your formula forE to determine the selling price that would have resulted in the largest annual revenue. $ What would have been the resulting annual revenue? (Round your answer to two decimal places.) $ 455.6 X billion
Transcribed Image Text:Worldwide annual sales of smartphones over a two year period were approximately q = -5p + 3,030 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one of the years the actual selling price was $365 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. The demand was going down v by about % per 1% increase in price at that price level. (c) Use your formula forE to determine the selling price that would have resulted in the largest annual revenue. $ What would have been the resulting annual revenue? (Round your answer to two decimal places.) $ 455.6 X billion
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