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anonymous

  • 4 years ago

The consumer demand equation for tissues is given by: q = (106 − p)^2, where p is the price per case of tissues and q is the demand in weekly sales. (a) Determine the price elasticity of demand E when the price is set at $32. (Round your answer to three decimal places.) E = ____? The demand is going down by what percent per 1% increase in price at that price level? (b) At what price should tissues be sold in order to maximize the revenue? (Round your answer to the nearest cent.) $_____? (c) Approximately how many cases of tissues would be demanded at that price? ____ cases per week?

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  1. anonymous
    • 4 years ago
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    got to love economics :)

  2. anonymous
    • 4 years ago
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    hmmmm the elasticity would be the change in quantity demanded divided by the change in price

  3. anonymous
    • 4 years ago
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    but i see no original price or quantity

  4. anonymous
    • 4 years ago
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    quantity = 5476 at $32

  5. anonymous
    • 4 years ago
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    5476/32 = 171.188

  6. anonymous
    • 4 years ago
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    so a. e= 171.188 i believe

  7. anonymous
    • 4 years ago
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    1% of $32 is $.32

  8. anonymous
    • 4 years ago
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    5476/32.32 = 177.785

  9. anonymous
    • 4 years ago
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    5476/32.64 = 167.785

  10. anonymous
    • 4 years ago
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    5476/32.32 = 169.431 oops

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