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A department store sells two brands of inexpensive calculators. The store pays $6 for each brand A calculator and $8 for each brand B calculator.
A department store sells two brands of inexpensive calculators. The
store pays $6 for each brand A calculator and $8 for each brand B
calculator. The research department has estimated the weekly
demand equations for these two products to be:
Qa = 116 - 30Pa + 20Pb (demand equation for brand A)
Qb = 144 + 16Pa - 24Pb (demand equation for brand B)
Where Pa is the selling price for brand A and Pb is the selling price
for brand B.
a)How should the store price each calculator to maximize weekly profits?
b)What is the maximum weekly profit?
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