R(p) = pN(p).| Bob is currently selling tires for 60 dollars each. His weekly sales are running at 130 tires per week, so N(60) = 130.| His marketing department estimates that he will lose 2 sales per week for each 10 dollar increase in unit price, so N'(60) = -0.2. Estimate Bob's increase in weekly revenue for each one dollar increase in tire price. Revenue increase =| dollars
R(p) = pN(p).| Bob is currently selling tires for 60 dollars each. His weekly sales are running at 130 tires per week, so N(60) = 130.| His marketing department estimates that he will lose 2 sales per week for each 10 dollar increase in unit price, so N'(60) = -0.2. Estimate Bob's increase in weekly revenue for each one dollar increase in tire price. Revenue increase =| dollars
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:R(p) = pN(p).|
Bob is currently selling tires for 60 dollars each. His weekly sales are running at 130 tires per week, so
N(60) = 130.
His marketing department estimates that he will lose 2 sales per week for each 10 dollar increase in unit price, so
N'(60) = -0.2.
Estimate Bob's increase in weekly revenue for each one dollar increase in tire price.
Revenue increase =1
dollars
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