Chapter 12, Problem 38RE

(a)

To determine

To calculate: The price elasticity of the demand as a function of p where the consumer demand for BOL (Better on line) is given by the equation $q=2000e^{-3p^2+2p}$ where p was the monthly access charge and q is the number of subscribers.

(b)

To determine

To calculate: The elasticity of the demand when the monthly access charge is set at $\$2$ per month and the consumer demand for BOL (Better on line) is given by the equation $q=2000e^{-3p^2+2p}$ where p was the monthly access charge and q is the number of subscribers.

(c)

To determine

To calculate: The price the company should charge in order to obtain largest revenue where the consumer demand for BOL (Better on line) is given by the equation $q=2000e^{-3p^2+2p}$ where p was the monthly access charge and q is the number of subscribers.