Your startup company Fabulous Fudge Inc. enters a new market. Your marketing consultants estimate the daily demand for your chocolate bars as
q(p) = 2000; if p < 1;
1000(-p^2 + 2p + 1); if 1 <= p < 2;
1000(p^2 - 6p + 9); if 2 <= p < 3;
0; if 3 <= p:
Here q denotes the quantity demanded per day and p the price per chocolate bar in dollars.
(a) Sketch the graph of demand q(p) as a function of price p.
(b) Compute the price elasticity of demand E(p).
(c) Determine the range of prices p for which demand is elastic, inelastic and unit elastic.
(d) If the price per chocolate bar is 1:2$ and you wish to increase your revenue, should you increase or decrease the unit price?
(e) Determine the price(s) p at which the instantaneous rate of change of revenue with respect to price is zero.
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
APPROVED BY CLIENTS
"assignmentexpert.com" is professional group of people in Math subjects! They did assignments in very high level of mathematical modelling in the best quality. Thanks a lot
Comments
Leave a comment