Question
The consumer demand equation for tissues is given by q = 8,281 182 p + p 2 , where p is the price per case
The consumer demand equation for tissues is given by
q = 8,281 182 p +p2,
where p is the price per case of tissues and q is the demand in weekly sales.
Determine the price elasticity of demand E when the price is set at $28. (Round your answer to three decimal places.)
E = 1
Interpret your answer.
When the price is set at $28, the demand is going 2
? up down
by 3 % per 1% increase in price.
At that price level, the demand is 4
----Select---- elastic inelastic of unit elasticity
.
If they raise prices, revenue will 5
----Select---- decrease increase
.
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