Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A physical therapy clinic faces a demand equation of Q = 200-1.5 P, where Q is sessions per month and P the price per session.

A physical therapy clinic faces a demand equation of Q = 200-1.5 P, where Q is sessions per month and P the price per session.

A.The clinic currently charges $80. What is its sales volume and revenue at this price?

B.If the clinic raised its price to $90, what would happen to volume and revenue?

C.If the clinic lowered its price to $70, what would happen to

volume and revenue?

D.Given these results, what would you recommend that the PT clinic do with respect to the price of its sessions - keep its current price ($80), raise its price ($90) or lower its price ($70)?Explain the reasons for your recommendation.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Theories Of Value From Adam Smith To Piero Sraffa

Authors: Ajit Sinha

2nd Edition

0429807716, 9780429807718

More Books

Students also viewed these Economics questions

Question

=+a) Find a linear model for this series.

Answered: 1 week ago

Question

10. What is meant by a feed rate?

Answered: 1 week ago