Question
When an electronics store prices a certain brand of stereos at p hundred dollars per set, it is found that q sets will be sold each month, where q2 + 2 p2 = 41.
a. Find the elasticity of demand for the stereos using implicit differentiation.
b. For a unit price of p = 4 ($400), is the demand elastic, inelastic, or of unit elasticity?
c. Find the number of stereo sets that will maximize revenue (prove your answer).
a. Find the elasticity of demand for the stereos using implicit differentiation.
b. For a unit price of p = 4 ($400), is the demand elastic, inelastic, or of unit elasticity?
c. Find the number of stereo sets that will maximize revenue (prove your answer).
Answers
Brook B
89