Worldwide annual sales of smartphones over a two year period were approximately q = -4p +...

Transcribed Image Text:

Worldwide annual sales of smartphones over a two year period were approximately q = -4p + 3,010 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one of the years the actual selling price was $305 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. The demand was going |---Select--- by about % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. What would have been the resulting annual revenue? (Round your answer to two decimal places.) billion LA Worldwide annual sales of smartphones over a two year period were approximately q = -4p + 3,010 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E = (b) In one of the years the actual selling price was $305 per phone. What was the corresponding price elasticity of demand? (Round your answer to two decimal places.) E = Interpret your answer. The demand was going |---Select--- by about % per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. What would have been the resulting annual revenue? (Round your answer to two decimal places.) billion LA

Answer rating: 100% (QA)

Solution Worldwide annual sal... View the full answer