The Physics Club sells 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: . 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.
(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?
