1. The Alpine Bagel Co. is evaluating pricing for Bagels in it's outlet in the student commons. Their in-house consulting team estimated that the daily demand for Bagels in the area to be the following Q = -20P + 10Ps - 20Pc +101 Where P = the price of bagels, P, = the price of scones (each), Pc = the price of coffee (per cup), and I = Income (average annual disposable income, for students in thousands of dollars) Font

1. The Alpine Bagel Co. is evaluating pricing for Bagels in it's outlet in the student commons. Their in-house consulting team estimated that the daily demand for Bagels in the area to be the following Q = -20P + 10Ps - 20Pc +101 Where P = the price of bagels, P, = the price of scones (each), Pc = the price of coffee (per cup), and I = Income (average annual disposable income, for students in thousands of dollars) Font

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The quantity of a product demanded by consumers is a function of its price. The quantity of one product demanded may also depend on the price of other products. For example, if the only chocolate shop in town (a monopoly) sells milk and dark chocolates, the price it sets for each affects the demand of the other. The quantities demanded, q, and q2, of two products depend on their prices, p, and P2, k as follows: Enter the exact answers. If one manufacturer sells both products, how should the prices be set to generate the maximum possible revenue? What is that maximum possible revenue? P₁ = P2 = H. 9₁ = 9₂ = The maximum revenue is i 280 - 5p₁-3p2 360 - 3p₁ - 5p2.
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Q1
The price of a widget decreases from $5000 to $4000, and in response to the price change the quantity demanded increases from 4000 to 8000 units. Therefore, demand for widgets in this price range: (Use the midpoint formula and write your answer in absolute terms, meaning as a positive number)
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