Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 1, Problem 11P
To determine
How much per mile driven does the tire save the customer.
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the demand equation for a product is q=1.5p+600, where q is the number of a products that can be sold in a month and p is the price per product. (a) what price will produce the largest revenue? (b) what is the largest monthly revenue?
For distract driving
An oil-producing country estimates that the demand for oil (in millions of barrels per
day) is D(p) = 9.5e-0.01p, where p is the price of a barrel of oil.
(a) Determine the elasticity of demand function, E(p), for the oil.
(b) Complete the table below and then identify the price per barrel, p, that
maximizes revenue.
Price per barrel, p
Elasticity, E(p)
80
90
100
110
120
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