Find price elasticity of demand for tv at best buy


Best buy can sell 1,200 Sony 40 inch flat screen TV's per week nationally if price is set at $950, and 1,450 TVs if price is $850 each. Using the linear demand model a). Find price elasticity of demand for the TV at Best Buy if price is $640? (nearest 0.01) b). TVs are i. Elastic, ii. Inelastic at that price? c) Find price elasticity of demand for the TV at Best Buy if price is $1000? (nearest 0.01) d) TVs are i. Elastic, ii. Inelastic at that price? e) At what price is maximum revenue per week attained? nearest 1$ f) Find that maximum revenue per week? nearest $1,000 g) How many TVs will be sold every week at that optimal price round up/ to nearest TV.

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Mathematics: Find price elasticity of demand for tv at best buy
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