Rad Designs sells two kinds of sweatshirts that compete with one another. Their demand functions are expressed by the following relationships: 91 = 78 – 6p1 – 3p2 %D 92%3D 66 - Зр, — бр2 Where p, and p2 are the prices of the sweatshirts in multiples of $10 and q, and q2 are the quantities of the sweatshirts demanded, in hundreds of units. a. Find the formula for total revenue in terms of p, and P2 note: R = P1q1 +P292 %3D b. What prices p, and p2 should be charged for each product in order to maximize revenue? c. How many units of each will be demanded? d. What is the maximum total revenue?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Rad Designs sells two kinds of sweatshirts that compete with one another.
Their demand functions are expressed by the following relationships:
91 = 78 – 6p1 – 3p2
92%3D 66 - Зр, — бр2
Where p, and p2 are the prices of the sweatshirts in multiples of $10 and
q, and q2 are the quantities of the sweatshirts demanded, in hundreds of
units.
a. Find the formula for total revenue in terms of p, and P2
note: R = p1q1 + P292
b. What prices p, and p2 should be charged for each product in order to
maximize revenue?
c. How many units of each will be demanded?
d. What is the maximum total revenue?
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Transcribed Image Text:Rad Designs sells two kinds of sweatshirts that compete with one another. Their demand functions are expressed by the following relationships: 91 = 78 – 6p1 – 3p2 92%3D 66 - Зр, — бр2 Where p, and p2 are the prices of the sweatshirts in multiples of $10 and q, and q2 are the quantities of the sweatshirts demanded, in hundreds of units. a. Find the formula for total revenue in terms of p, and P2 note: R = p1q1 + P292 b. What prices p, and p2 should be charged for each product in order to maximize revenue? c. How many units of each will be demanded? d. What is the maximum total revenue? MacBook Pro Fom/courses/34419/files/5014304?wrap%-1 2$ % & ( 4 5 6 7 9 R Y U P * CO
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