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Suppose that two toothpaste companies compete for customers in a fixed market in which each customer uses either Brand A or Brand B. Suppose also that a market analysis shows that the buying habits of the customers fit the following pattern in the quarters that were analyzed: each quarter (three-month period), 30% of A users will switch to B, while the rest stay with A. Moreover, 40% of B users will switch to A in a given quarter, while the remaining B users will stay with B. Finally assume that this pattern does not vary from quarter to quarter. (a) If A initially has all of the customers, what are the market shares 2 quarters later? (b) If A initially has all of the customers, what are the market shares 20 quarters later? (c) If B initially has all of the customers, what are the market shares 2 quarters later? (d) If B initially has all of the customers, what are the market shares 20 quarters later?

Suppose that two toothpaste companies compete for customers in a fixed market in which each customer uses either Brand A or Brand B. Suppose also that a market analysis shows that the buying habits of the customers fit the following pattern in the quarters that were analyzed: each quarter (three-month period), 30% of A users will switch to B, while the rest stay with A. Moreover, 40% of B users will switch to A in a given quarter, while the remaining B users will stay with B. Finally assume that this pattern does not vary from quarter to quarter. (a) If A initially has all of the customers, what are the market shares 2 quarters later? (b) If A initially has all of the customers, what are the market shares 20 quarters later? (c) If B initially has all of the customers, what are the market shares 2 quarters later? (d) If B initially has all of the customers, what are the market shares 20 quarters later?

Big Ideas Math A Bridge To Success Algebra 1: Student Edition 2015
Big Ideas Math A Bridge To Success Algebra 1: Student Edition 2015
1st Edition
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:HOUGHTON MIFFLIN HARCOURT
Chapter4: Writing Linear Equations
Section: Chapter Questions
Problem 14CR
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Suppose that two toothpaste companies compete for customers in a fixed market in which each customer uses either Brand A or Brand B. Suppose also that a market analysis shows that the buying habits of the customers fit the following pattern in the quarters that were analyzed: each quarter (three-month period), 30% of A users will switch to B, while the rest stay with A. Moreover, 40% of B users will switch to A in a given quarter, while the remaining B users will stay with B. Finally assume that this pattern does not vary from quarter to quarter. (a) If A initially has all of the customers, what are the market shares 2 quarters later? (b) If A initially has all of the customers, what are the market shares 20 quarters later? (c) If B initially has all of the customers, what are the market shares 2 quarters later? (d) If B initially has all of the customers, what are the market shares 20 quarters later?
Transcribed Image Text:Suppose that two toothpaste companies compete for customers in a fixed market in which each customer uses either Brand A or Brand B. Suppose also that a market analysis shows that the buying habits of the customers fit the following pattern in the quarters that were analyzed: each quarter (three-month period), 30% of A users will switch to B, while the rest stay with A. Moreover, 40% of B users will switch to A in a given quarter, while the remaining B users will stay with B. Finally assume that this pattern does not vary from quarter to quarter. (a) If A initially has all of the customers, what are the market shares 2 quarters later? (b) If A initially has all of the customers, what are the market shares 20 quarters later? (c) If B initially has all of the customers, what are the market shares 2 quarters later? (d) If B initially has all of the customers, what are the market shares 20 quarters later?
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