Question
Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for each depends partly on the price of the other.
Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for each depends partly on the price of the other. If one is expensive, then more people will buy the other. Ifp1is the price of the Ultra Mini, andp2is the price of the Big Stack, demand (quantity sold) for the Ultra Mini is given by
q1= 100,000600p1+ 10p2
whereq1represents the number of Ultra Minis that will be sold in a year. The demand (quantity sold) for the Big Stack is given by
q2= 150,000 + 10p1600p2.
Find the prices for the Ultra Mini and the Big Stack that will maximize your total revenue. Remember that revenue for each item is price*quantity. (Round your answers to two decimal places.)
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