Miscellaneous Review Questions for

Calculus Applied to the Real World

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This Topic: Elasticity of Demand

Other Topics:


Functions and Graphs
Derivatives
Maxima and Minima
The Integral

Question 1

The demand equation for the Physics Club's "E=mc2" T shirts is given by

q = 2p2 + 33p     (9 p 15)
where p is the price they charge per T shirt, and q is the number they can sell each day at the local flea market.

(a) Obtain a formula for the price elasticity of demand, E for "E=mc2" T shirts.

(b) Compute the elasticity of demand if the price is set at $10 per shirt. Interpret the result.

(c) How much should the Physics Club charge for their T shirts in order to obtain the maximum revenue? What will this revenue be?

Answer

We would welcome submissions of additional questions to add to this page. Submit questions with answers to:

Stefan Waner (matszw@hofstra.edu)
Steven R. Costenoble (matsrc@hofstra.edu)
Last Updated:May, 1997
Copyright © 1996 StefanWaner and Steven R. Costenoble