Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am stuck on one question that I feel I am missing a step. Trying to figure out how to get cost function after figuring

I am stuck on one question that I feel I am missing a step. Trying to figure out how to get cost function after figuring out demand function (question 1)

image text in transcribed
1. (6 points). Estimated Demand. You are the manager of a firm that sells packs of coffee pods for coffee makers. You typically sell the packs for $24 and sell an average of 2,470 packs per month. You decide to raise the price to $28 per pack. When you do this your monthly sales fall to 1,482 packs per month. Assuming that your firm's demand function is linear (i.e., takes the form ), calculate the linear demand function for the packs 2 = 2470 Q = 1482 P = $24 P = 28 2470 = 9- 6 x 24 9 - 24 6 = 24/70 9 = 2470 + 24 / 247 4 -246 - 2470. - 2470 +5 92 8 4 - 286 = 1482 19: 8398 46 = 988 4 4 1 = 247 Q = $398 - 247p

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

Democratizing The Economics Debate Pluralism And Research Evaluation

Authors: Carlo D'Ippoliti

1st Edition

1000066169, 9781000066166

More Books

Students also viewed these Economics questions

Question

1. To gain knowledge about the way information is stored in memory.

Answered: 1 week ago