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How would I complete the Dynamic Pricing Excel Solver below? How would I solve a, b, and c. Please show steps and kindly explain so
How would I complete the Dynamic Pricing Excel Solver below? How would I solve a, b, and c. Please show steps and kindly explain so that I will understand the process.. Thank you.
(3) (Dynamic Pricing) Suppose now that we have 1200 units of product to sell over a five-day period, and that the demand curves for the individual days are linear, as follows (again assume that there is no demand crossover): Demand Day 1 Quantity Sold =60030 Price Demand Day 2 Quantity Sold =90060 Price Demand Day 3 Quantity Sold =80040 Price Demand Day 4 Quantity Sold =80040 Price Demand Day 5 Quantity Sold =90060 Price (a) If we are obliged to charge the same price on all days, what price will maximize total revenue derived from our fixed inventory? (b) If we are free to charge different prices on different days and there is no demand crossover, what prices will maximize total revenue derived from our fixed inventory? (c) Suppose that, after implementing on day 1 the optimal price that you computed in part (b) above, you find that sales on day 1 are 25% greater than you expected. What price do you now recommend for day 2
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