Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows. De demand for the Sky Eagle P-selling price of the Sky Eagle DH demand for the Horizon PH selling price of the Horizon D-227-0.60P + 0.35PM DH-275+0.10P-0.64PH The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function R (in terms of Pg and P only) for these two models, and find the prices (in dollars) that maximizes revenue. (Round your answers to two decimal places.) R-227Ps - 0.6(Ps)² +0.45PPH+275PH-0.64(PH)² Revenue Price for Sky Eagle Price for Horizon Optimal revenue P₁-S PH-S R$ x x x

Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows. De demand for the Sky Eagle P-selling price of the Sky Eagle DH demand for the Horizon PH selling price of the Horizon D-227-0.60P + 0.35PM DH-275+0.10P-0.64PH The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function R (in terms of Pg and P only) for these two models, and find the prices (in dollars) that maximizes revenue. (Round your answers to two decimal places.) R-227Ps - 0.6(Ps)² +0.45PPH+275PH-0.64(PH)² Revenue Price for Sky Eagle Price for Horizon Optimal revenue P₁-S PH-S R$ x x x

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows:

- $ D_S $ = demand for the Sky Eagle
- $ P_S $ = selling price of the Sky Eagle
- $ D_H $ = demand for the Horizon
- $ P_H $ = selling price of the Horizon

\[
D_S = 227 - 0.60P_S + 0.35P_H \\
D_H = 275 + 0.10P_S - 0.64P_H
\]

The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function $ R $ (in terms of $ P_S $ and $ P_H $ only) for these two models, and find the prices (in dollars) that maximize revenue. (Round your answers to two decimal places.)

**Revenue Function:**

\[
R = 227P_S - 0.6(P_S)^2 + 0.35P_SP_H + 275P_H + 0.10P_SP_H - 0.64(P_H)^2
\]

**To Be Determined:**
- Price for Sky Eagle $ P_S $ = $ [ ]$
- Price for Horizon $ P_H $ = $ [ ]$
- Optimal revenue $ R $ = $ [ ]$

(Note: Boxes with an "X" next to them indicate inputs/values that need to be calculated or filled in.)

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