?

Single Variable Calculus

Free Version

Upgrade subject to access all content

Easy

Price Elasticity and Maximization of Revenue

SVCALC-YK4TMG

A company produces crates of facial tissues. The demand $Q$ is determined by the wholesale price $p$ by

$$Q = (85-p)^2$$

for $p\in[0,85]$ and $Q=0$ for $p>85$.

1) Is the demand elastic or inelastic when the price is set to $\$30$?

2) What should the price be in order to maximize revenue?

A

elastic; $\$85.00$

B

elastic; $\$28.33$

C

inelastic; $\$82$

D

inelastic; $\$52.67$