Question

The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 104e−3p2 + p, where q is the demand in monthly sales and p is the retail price in hundreds of yen. Determine the price elasticity of demand E when the retail price is set at ¥200.

Answer 1

Answer:

The price elasticity of demand is 0

Step-by-step explanation:

The demand function for monthly sales is given as:

q = 104e^-3p^2 + p

The price elasticity of demand E is obtained by differentiating q with respect to p

E = dq/dp = (-6p + 1) × 104e^-3p^2 +p =

When p = ¥200

E = (-6×200 + 1) × 104e^-3(200)^2 + 200 = -1199 × 104(0) = -1199 × 0 = 0