Math project - Speech or Presentation Example

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We also sought to compute the optimal revenue and optimal quantity demanded based on the optimal price. In our calculations we obtained the point elasticity of demand to be -2 at the point…

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Subject: Mathematics
Type: Speech or Presentation
Level: Undergraduate
Pages: 5 (1250 words)
Downloads: 2
Author: agleichner

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It is important to know the possible revenue that a company can generate at a particular price. This study sought to compute the optimal revenue of Company X based on the equation: To compute the point elasticity of demand, we find the percentage change in price and the percentage change in quantity demanded considering movement from point to point . To find the percentage change in price we use the formula for a percentage change: The computed point elasticity of demand is -2 when p = 15 increasing the price, p by 1% reduces the point elasticity of demand by 0.06%. The optimal price was computed to be $8 that yielded an optimal revenue and quantity of $1552 and 192

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