The demand curve for the original Iguanawoman comics is given by q = (400-p) ^2/100

where q is the number of copies the publisher can sell per week if it sets the price at $p.

(a) Find the price elasticity of demand when the price is set at $40 per copy.

(b) Find the price at which the publisher should sell the books in order to maximize weekly revenue.

(c) What, to the nearest $1, is the maximum weekly revenue the publisher can realize from sales of Iguanawoman comics?

Question

Sonia Bartlett

Mathematics

22 July, 18:12

The demand curve for the original Iguanawoman comics is given by q = (400-p) ^2/100

where q is the number of copies the publisher can sell per week if it sets the price at $p.

(a) Find the price elasticity of demand when the price is set at $40 per copy.

(b) Find the price at which the publisher should sell the books in order to maximize weekly revenue.

(c) What, to the nearest $1, is the maximum weekly revenue the publisher can realize from sales of Iguanawoman comics?

+5

Answers (1)

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Tiny · Answer 1

Given:

Demand curve: q = (400-p) ^2 / 100

where:

q = the number of copies the publisher can sell per week at $p

p = price of the copies

a) Find the price elasticity of demand when the price is set at $40 per copy

substitute p = $40

q = (400-40) ^2 / 100

Therefore,

q = 1296