Suppose the current exchange rate is 115 yen per dollar. We currently have a demand for 50 units of our product when the unit price is 800 yen. The cost of producing and shipping the product to Japan is $6, and the current elasticity of demand is 22.5. Find the opti- mal price to charge for the product (in yen) for each of the following exchange rates: 60 yen/$, 80 yen/$, 100 yen/$, 120 yen/$, 140 yen/$, and 160 yen/$. Assume the demand function is linear.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose the current exchange rate is 115 yen per
dollar. We currently have a demand for 50 units of our
product when the unit price is 800 yen. The cost of
producing and shipping the product to Japan is $6, and

the current elasticity of demand is 22.5. Find the opti-
mal price to charge for the product (in yen) for each of

the following exchange rates: 60 yen/$, 80 yen/$, 100
yen/$, 120 yen/$, 140 yen/$, and 160 yen/$. Assume
the demand function is linear.

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