Last year OHaganBooks.com experimented with an online subscriber service, Red On Line $($ROL$),$ for its e$-$book service. The consumer demand for ROL was modeled by the equation

q $=1,300$e$$p$2+$ p$,$

where p was the monthly access charge and q is the number of subscribers.

$($a$)$

Obtain a formula for the price elasticity of demand, E$,$ for ROL services.

E$($p$)=$

$($b$)$

Compute the elasticity of demand if the monthly access charge is set at $$2$ per month.

E$(2)=$

Interpret the result.

The demand is

$---$Select$---$

at a rate equal to E$(2)$ per $1\%$ increase in the price.

$($c$)$

How much $($in dollars$)$ should the company have charged to obtain the maximum monthly revenue?

$

How much $($in dollars$)$ would this revenue have been?