Recall that the price elasticity of demand E is the percentage rate of decrease of demand divided by the percentage increase of price, given by the formula. We are already given the formula or = 10p + 4,480 for the demand of smartphones (in millions). First, we find the derivative 3. dp e = 0'9 Next, substitute the values for E and q into the formula for the price elasticity demand. 0'19 E=*- = _ , p 1Clp + 4,480 =( )9 lp + 4,480 Therefore, the price elasticity demand for smartphones is E = The weekly sales of Honolulu Red Oranges is given by q = 1,050 10p Calculate the price elasticity of demand when the price is $30 per orange (yes, $30 per orangef). HINT [See Example 1.] Interpret your answer. The demand is going by \:| "/0 per 1% increase in price at that price level. Also, calculate the price that gives a maximum weekly revenue. $: Find this maximum revenue. 3:: A study of about 1,800 U.S colleges and universities resulted in the demand equation q : 101200 2.417, where q is the enrollment at a college or university, and p is the average annual tuition (plus fees) it charges. (a) The study also found that the average tuition charged by universities and colleges was $2,700. What is the corresponding price elasticity of demand? (Round your answers to two decimal places) E 15 the price elastic or inelasti(? O elastic O inelastic Should colleges charge more or less on average to maximize revenue? 0 more 0 less (b) Based on the study, what would you advise a college to charge its students in order to maximize total revenue? eEnenetnentn What would the revenue be? $|:| The demand curve for original Iguanawoman comics is given by 2 q:& [ogpg459}, 150 where q is the number of copies the publisher can sell per week if it sets the price at $p. (a) Find the price elasticity of demand when the price is set at $30 per copy. (Round your answer to two decimal places.) : (b) Find the price at which the publisher should sell the books to maximize weekly revenue. (Round your answer to the nearest cent.) $ S (c) What, to the nearest $1, is the maximum weekly revenue the publisher can realize from sales of Iguanawoman comics? 55