The weekly sales of 15lb boxes of Honolulu Red Oranges is given by x = 924 - 22p. where x denotes the quantity demanded and p denotes the price, in dollars. (a) Calculate the price elasticity of demand when the price is $28 per box.). X Interpret your answer. The demand is going down by 2 % per 1% increase in price at that price level. (b) Calculate the approximate price at which weekly revenue is maximized (ie. the price at which demand is unitary). $ Find this revenue at the price determined in your previous answer. $

The weekly sales of 15lb boxes of Honolulu Red Oranges is given by x = 924 - 22p. where x denotes the quantity demanded and p denotes the price, in dollars. (a) Calculate the price elasticity of demand when the price is $28 per box.). X Interpret your answer. The demand is going down by 2 % per 1% increase in price at that price level. (b) Calculate the approximate price at which weekly revenue is maximized (ie. the price at which demand is unitary). $ Find this revenue at the price determined in your previous answer. $

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 18SQ

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