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Macy's adopts a 3-period markdown strategy for a skirt with a selling season of 3 months (each month corresponds to a period). Demand for the skirt is 2000 - 50p, where stands for the unit selling price. Unit prices in different periods are $20, $10, and $5, respectively. ■ What is the total revenue? Complete the table below. Period Price Total Demand Purchase in The Period Cumulative Revenue $20 2 $10 3 $5 ■ If optimal prices in the three periods are used, how would the total revenue change? Complete the table below. Price - EA EA $ N EA 3 Total Demand Purchase in The Period Cumulative Revenue $ $ $ р " Back to the original setting, i.e., ignore the price changes you suggest in part b and use the original prices $20, $10 and $5. But now 10% customers are patient enough to wait one month for the next lower price, even if the current price is below their willingness to pay. Finish the following table to compute the total revenue. Period Price Total Demand 1 $20 2 $10 3 $5 Purchase in The Period Cumulative Revenue $ $

Macy's adopts a 3-period markdown strategy for a skirt with a selling season of 3 months (each month corresponds to a period). Demand for the skirt is 2000 - 50p, where stands for the unit selling price. Unit prices in different periods are $20, $10, and $5, respectively. ■ What is the total revenue? Complete the table below. Period Price Total Demand Purchase in The Period Cumulative Revenue $20 2 $10 3 $5 ■ If optimal prices in the three periods are used, how would the total revenue change? Complete the table below. Price - EA EA $ N EA 3 Total Demand Purchase in The Period Cumulative Revenue $ $ $ р " Back to the original setting, i.e., ignore the price changes you suggest in part b and use the original prices $20, $10 and $5. But now 10% customers are patient enough to wait one month for the next lower price, even if the current price is below their willingness to pay. Finish the following table to compute the total revenue. Period Price Total Demand 1 $20 2 $10 3 $5 Purchase in The Period Cumulative Revenue $ $

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Macy's adopts a 3-period markdown strategy for a skirt with a selling season of 3 months (each month corresponds to a period). Demand for the skirt is 2000 - 50p, where stands for the unit selling price. Unit prices in different periods are $20, $10, and $5, respectively. ■ What is the total revenue? Complete the table below. Period Price Total Demand Purchase in The Period Cumulative Revenue $20 2 $10 3 $5 ■ If optimal prices in the three periods are used, how would the total revenue change? Complete the table below. Price - EA EA $ N EA 3 Total Demand Purchase in The Period Cumulative Revenue $ $ $ р " Back to the original setting, i.e., ignore the price changes you suggest in part b and use the original prices $20, $10 and $5. But now 10% customers are patient enough to wait one month for the next lower price, even if the current price is below their willingness to pay. Finish the following table to compute the total revenue. Period Price Total Demand 1 $20 2 $10 3 $5 Purchase in The Period Cumulative Revenue $ $
Transcribed Image Text:Macy's adopts a 3-period markdown strategy for a skirt with a selling season of 3 months (each month corresponds to a period). Demand for the skirt is 2000 - 50p, where stands for the unit selling price. Unit prices in different periods are $20, $10, and $5, respectively. ■ What is the total revenue? Complete the table below. Period Price Total Demand Purchase in The Period Cumulative Revenue $20 2 $10 3 $5 ■ If optimal prices in the three periods are used, how would the total revenue change? Complete the table below. Price - EA EA $ N EA 3 Total Demand Purchase in The Period Cumulative Revenue $ $ $ р " Back to the original setting, i.e., ignore the price changes you suggest in part b and use the original prices $20, $10 and $5. But now 10% customers are patient enough to wait one month for the next lower price, even if the current price is below their willingness to pay. Finish the following table to compute the total revenue. Period Price Total Demand 1 $20 2 $10 3 $5 Purchase in The Period Cumulative Revenue $ $
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