Answer:
a) -0.842
b) $0
c) 11,664 cases
Step-by-step explanation:
a)
The price elasticity of demand E at a given point is defined as
and in this case, it would measure the possible response of tissues demand due to small changes in its price when the price is at
When the price is set at $32 the demand is
cases of tissues, so
Also, we have
hence
That would mean the demand is going down about 0.842% per 1% increase in price at that price level.
b)
When the price is $108 the demand is 0, so the price should always be less than $108.
On the other hand, the parabola
is strictly decreasing between 0 and 108, that means the maximum demand would be when the price is 0.
c)
When the price is 0 the demand is
cases