During the summer months Terry makes and sells necklaces on the beach. Last summer he sold the

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During the summer months Terry makes and sells necklaces on the beach. Last summer he sold the necklaces for $10 each and his sales averaged 20 per day. When he increased the price by $1, he found that he lost two sales per day.
(a) Find the demand function, assuming that it is linear.
(b) If the material for each necklace costs Terry $6, what should the selling price be to maximize his profit?
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Managerial Decision Modeling With Spreadsheets

ISBN: 718

3rd Edition

Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair

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