Before a company started selling a new digital camera, its marketing team surveyed consumers regarding whether or not they would consider buying the camera at different price levels. The table lists their estimates for the number of cameras that will sell at a particular price. (Let a represent the units sold in thousands) Units sold Price (thousands) 5125 519 $150 43.5 $125 37 5200 5225 (a) Use a graphing calculator to fing an exponential model of the demand function PDM) for the camera. (Give your numerical values to three decimal places) D(0) (b) Use the model to estimate how many cameras wit set if the camera is priced at $189. (Round your answer to the nearest integer.) thousand cameras (C) According to your model, what is the elasticity of demand at the $169 price point? (Round your answer to two decimal places) Does your ansner suggest that the camera should be priced higher or lower? The camera should be priced higher The camera should be priced lower (a) Compute the total revenue using the values in the table. Then estimate the camera price that will bring in the most revenue 5 Use clasticity to find the price for the camera that will bring the greatest revenue. How does it compare to your estimate in part (a) (Hound your answer to two decimal places) Before a company started selling a new digital camera, its marketing team surveyed consumers regarding whether or not they would consider buying the camera at different price levels. The table lists their estimates for the number of cameras that will sell at a particular price. (Let a represent the units sold in thousands) Units sold Price (thousands) 5125 519 $150 43.5 $125 37 5200 5225 (a) Use a graphing calculator to fing an exponential model of the demand function PDM) for the camera. (Give your numerical values to three decimal places) D(0) (b) Use the model to estimate how many cameras wit set if the camera is priced at $189. (Round your answer to the nearest integer.) thousand cameras (C) According to your model, what is the elasticity of demand at the $169 price point? (Round your answer to two decimal places) Does your ansner suggest that the camera should be priced higher or lower? The camera should be priced higher The camera should be priced lower (a) Compute the total revenue using the values in the table. Then estimate the camera price that will bring in the most revenue 5 Use clasticity to find the price for the camera that will bring the greatest revenue. How does it compare to your estimate in part (a) (Hound your answer to two decimal places)
