Question
Suppose your demand function is given by D(q)=q22q+540D(q)=-q2-2q+540, where q is thousands of units sold and D(q) is dollars per unit. Compute the following, showing
Suppose your demand function is given by D(q)=q22q+540D(q)=-q2-2q+540, where q is thousands of units sold and D(q) is dollars per unit. Compute the following, showing all calculations clearly. A) If 80008000 units are to be sold, what price should be charged for the item? Price = $ __________ B) If a price of $397397 is set for this item, how many units can you expect to sell? (Give your answer as whole units, not in thousands of units.) You can sell 11000 whole units (Your answer should not be terms of thousands of units). C) At what value of qq does D(q)D(q) cross the qq axis? (When you give your answer, round your answer to three decimal places) It crosses at q=___________________ thousand units.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started