(a)

E =

4p33 2p+33

(b)

E =

4(10)33 2(10)+33

=

7 13

This means that, for every 1% increase in the price, the demand drops by approximately 7/13 0.538%.

(c) Setting E = 1 gives p = $11. Therefore, they should charge $11 per T shirt to maximize revenue. At this price, the total revenue is given by

R = pq = p(2p² + 33p) = 11(2(11)² + 33(11)) = $1,331.

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