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The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 102e3/2, where q is the demand in monthly
The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 102e3/2, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at 300. E X Interpret your answer. The demand is going down by X% 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 the nearest integer.) 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.) xpaint-by-number sets per month
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a To determine the price elasticity of demand E well use the formula E dPP dQQ Where E Price elastic...Get Instant Access to Expert-Tailored Solutions
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