The weekly sales of honolulu red oranges is given by q = 1,044 − 12p. Calculate the price elasticity of demand when the price is $29 per orange. Also, calculate the price that gives a maximum weekly revenue.
a) Price elasticity of demand = -0.48, Maximum weekly revenue at $43.67 per orange.
b) Price elasticity of demand = -2.58, Maximum weekly revenue at $87.33 per orange.
c) Price elasticity of demand = -0.48, Maximum weekly revenue at $87.33 per orange.
d) Price elasticity of demand = -2.58, Maximum weekly revenue at $43.67 per orange.