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he demand for a company's e-reader can be approximated by q(p) = 21e−0.02p million units per year  (20 ≤ p ≤ 500), where p is the price charged for the e-reader. Obtain a formula for price elasticity of demand E. E =  0.02p       Calculate its value at the two endpoints of the given range of prices. E(20)= E(500)=  Is the price that would maximize annual revenue within the range of prices shown? YesNo     How would you know this without calculating that price? The value  E(20)       1  and  E(500)       1.  Therefore the price that would maximize revenue would result in E = 1, and      lie between 20 and 500

he demand for a company's e-reader can be approximated by q(p) = 21e−0.02p million units per year  (20 ≤ p ≤ 500), where p is the price charged for the e-reader. Obtain a formula for price elasticity of demand E. E =  0.02p       Calculate its value at the two endpoints of the given range of prices. E(20)= E(500)=  Is the price that would maximize annual revenue within the range of prices shown? YesNo     How would you know this without calculating that price? The value  E(20)       1  and  E(500)       1.  Therefore the price that would maximize revenue would result in E = 1, and      lie between 20 and 500

College Algebra
College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter3: Functions
Section3.2: Domain And Range
Problem 61SE: The cost in dollars of making x items is given by the function Cx)=10x+500. a. The fixed cost is...
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he demand for a company's e-reader can be approximated by
q(p) = 21e−0.02p million units per year  (20 ≤ p ≤ 500),
where p is the price charged for the e-reader. Obtain a formula for price elasticity of demand E.
E = 
0.02p
 
 
 
Calculate its value at the two endpoints of the given range of prices.
E(20)= E(500)= 
Is the price that would maximize annual revenue within the range of prices shown?
YesNo    
How would you know this without calculating that price?
The value 
E(20)       1
 and 
E(500)       1.
 Therefore the price that would maximize revenue would result in E = 1, and      lie between 20 and 500
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