Question
Given the following inverse demand function for Amazon's Kindle Fire, answer the questions below. = 150 1 3 a. What is the Total Revenue (TR)
Given the following inverse demand function for Amazon's Kindle Fire, answer the questions below. = 150 1 3 a. What is the Total Revenue (TR) function that describes the demand for Amazon's Kindle Fire? TR= b. What is the Total Revenue maximizing Price and Quantity for Amazon? c. What is the actual amount of Total Revenue ($ value) that Amazon can earn, given your solution in 'part b?' (i.e. TR = $X) d. What is the Price Elasticity of Demand for Kindles when P = 100? e. Given the price elasticity you found in part d, should Amazon increase or decrease its price to raise revenues?
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
