Question

The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula $q = 97e^p - 3p^2/2$, where q is the demand in monthly sales and p is the retail price in yen. (a) Determine the price elasticity of demand E when the retail price is set at 4 yen. E = 44 Interpret your answer. The demand is going down by 44 % per 1% increase in price at that price level. Thus, a large price decrease is advised. (b) At what price will revenue be a maximum? (Round your answer to two decimal places.) 3 yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) 0 paint-by-number sets per month

          The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula $q = 97e^p - 3p^2/2$, where q is the demand in monthly sales and p is the retail price in yen.
(a) Determine the price elasticity of demand E when the retail price is set at 4 yen.
E = 44
Interpret your answer.
The demand is going down by 44 % per 1% increase in price at that price level.
Thus, a large price decrease is advised.
(b) At what price will revenue be a maximum? (Round your answer to two decimal places.)
3  yen
(c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.)
0  paint-by-number sets per month

The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 97e^p - 3p^2/2, where q is the demand in monthly sales and p is the retail price in yen.
(a) Determine the price elasticity of demand E when the retail price is set at 4 yen.
E = 44
Interpret your answer.
The demand is going down by 44 % per 1% increase in price at that price level.
Thus, a large price decrease is advised.
(b) At what price will revenue be a maximum? (Round your answer to two decimal places.)
3 yen
(c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.)
0 paint-by-number sets per month

Added by Dennis H.

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