The Physics Club sells E = mc2 T-shirts at the local flea market. Unfortunately,

Question

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: q = ?2p2 + 33p (9 ? p ? 15). Here, p is the price the club charges per T-shirt, and q is the number it can sell each day at the flea market. (b) Compute the elasticity of demand if the price is set at $9 per shirt. (Round your answer to two decimal places.)

Explanation / Answer

q = -2p^2 + 33p...> q' = -4p +33 so q'(9) = -3 and elasticity = (dp/p)/(dq/q) = -3*9/(-2*9*9+33*9) = -27/135 = 0.20

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