Order to obtain the maximum daily revenue

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The Physics Club sells E = mc2 T-shirts at the local flea market. Unfortunately, the club's previous administration has been losing money for years, so you decide to do an analysis of the sales. A quadratic regression based on old sales data reveals the following demand equation for the T-shirts: x = −2p2 + 36p (9 ≤ p ≤ 16). Here, p is the price the club charges per T-shirt, and x is the number of shirts it can sell each day at the flea market. (a) Obtain a formula for the price elasticity of demand for E = mc2 T-shirts. E = (b) Compute the elasticity of demand if the price is set at $10.50 per shirt. (Round your answer to two decimal places.) Interpret the result. The demand for E = mc2 T-shirts is going Correct: Your answer is correct. by about % per 1% increase in the price. (c) How much should the Physics Club charge for the T-shirts in order to obtain the maximum daily revenue? $ What will the maximum revenue be? $

Reference no: EM131076420

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Order to obtain the maximum daily revenue : The Physics Club sells E = mc2 T-shirts at the local flea market. Unfortunately, the club's previous administration has been losing money for years, so you decide to do an analysis of the sales. How much should the Physics Club charge for the T-shirt..

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