A cruise line estimates that when each deluxe balcony stateroom on a particular cruise is priced at

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A cruise line estimates that when each deluxe balcony stateroom on a particular cruise is priced at p thousand dollars, then q tickets for staterooms will be demanded by travelers, where q = 300 − 0.7p².

a. Find the elasticity of demand for the stateroom tickets.

b. When the price is $8,000 (p = 8) per stateroom, should the cruise line raise or lower the price to increase total revenue?

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Calculus For Business, Economics And The Social And Life Sciences

ISBN: 9780073532387

11th Brief Edition

Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price

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Question Posted: Jun 01, 2023 08:16 AM

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A cruise line estimates that when each deluxe balcony stateroom on a particular cruise is priced at

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a b Since ...View the full answer

Calculus For Business, Economics And The Social And Life Sciences

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