The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 95e−3p2 + p,
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.
Interpret your answer.
The demand is going
? up down
by % per 1% increase in price at that price level. Thus, a large price
? increase decrease
(b) At what price will revenue be a maximum?
(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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