The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula  q = 95ep − 3p2⁄2,  where q is the demand in monthly sales and p is the retail price in hundreds of yen.   (a)Determine the price elasticity of demand E when the retail price is set at ¥300. E =  Interpret your answer. The demand is going

Microeconomics: Private and Public Choice (MindTap Course List)
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Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 9CQ
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The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula 
q = 95ep − 3p2⁄2,
 where q is the demand in monthly sales and p is the retail price in hundreds of yen.
 
(a)Determine the price elasticity of demand E when the retail price is set at ¥300.
E = 
Interpret your answer.
The demand is going     by  % per 1% increase in price at that price level. Thus, a large price   ___     is advised.
 
(b)At what price will revenue be a maximum? (Round your answer to the nearest integer.)
 yen
 
(c)Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.)
 paint-by-number sets per month
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