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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)
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 - 247pStep by Step Solution
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