Question

The consumer demand equation for tissues is given by q = (94 − p)^2, where p is the price per case of tissues and q is the demand in weekly sales. Determine the price elasticity of demand E when the price is set at $34. (Round your answer to three decimal places.)

Answer 1

Answer:

So the  Determine the price elasticity of demand E  is $ $\frac{17}{15}$

Explanation:

Given that :

q =$(94-p)^{2}$ where p is the price per case of tissues and q is the demand in weekly sales

As we know that price elasticity of demand given as:

$E=-\dfrac{dq}{dp}.\dfrac{p}{q}$

Here we have: $\frac{dq}{dp} = -2(91-p)$, substitute into E we have:

$E=2 (94-p)\dfrac{p}{(94-p)^2}.$

when the price is set at $34, we have:

$E=2 (94-34)\dfrac{34}{(94-34)^2}.$

=$ $\frac{17}{15}$

So the  Determine the price elasticity of demand E  is $ $\frac{17}{15}$

Answer 2

Answer:

Price elasticity of demand is 1.133

Explanation:

Explanation:

Given Data;

q = (94 − p)^2

p = price per case of tissue

q = demand in weekly sales

p = $34

Price elasticity of demand E =?

To calculate the price elasticity of demand, we use the formula;

E =⁻ $\frac{dq}{dp} * \frac{p}{q}$ ----------------------1

By differentiating q with respect to p, we have

dp/dq =  (94 − p)^2

             =2( 94-p) * (-1)

            =  -2(94-p)

Substituting into equation 1,

where dp/dq = -(94-p) and q = (94 − p)^2

E =( -) -2(94-p) * p/((94 − 34)^2)

When the price is at $34, Elasticity becomes

E = -2(94-34) * 34/((94 − 34)^2)

   =( 2*60) * (34/60²)

 =120 * 34/3600

= 120 * 0.00944

  =1.133