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A tech company is currently selling their software for $99 and has 250,000 clients. Due to upgrades on the software to increase functionality, they wish
A tech company is currently selling their software for $99 and has 250,000 clients. Due to upgrades on the software to increase functionality, they wish to increase the price to $149. Market research indicates to them that they will lose 25,000 customers if they do this. What is the demand equation for this product, assuming a linear relationship between price and demand? What is the revenue equation? What is the optimal price for their software to maximize revenue?
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