The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 220, Camera B Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships between the quantity sold (N) and prices (P) of each model:
NA = 195 - 0.5PA + 0.25PB
NB = 301 + 0.07PA - 0.5PB
Construct a model for the total revenue and implement it on a spreadsheet. Develop a two-way data table to estimate the optimal prices for each product in order to maximize the total revenue. Vary each price from $250 to $500 in increments of $10.
Max profit occurs at Camera A price of $ .
Max profit occurs at Camera B price of $ .
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 220, Camera...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 220, Camera B Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera B Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 230, Camera B Price: 310). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera A Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy o maximize revenue rom these products. A study of price and sales data shows the fol in...
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera B Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships between...
The Radio Shop sells two popular models of portable sports radios: model A and model B. The sales of these products are not independent of each other (in economics, we call these substitutable products, because if the price of one increase, sales of the other will increase). The store wishes to establish a pricing policy to maximize revenue from the products. A study of price and sales data shows the following relationships between the quantity sold (N) and prices (P)...
Problem 8-03 Jim’s Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows: DS = demand for the Sky Eagle, PS is the selling price of the Sky Eagle, DH is the demand for the Horizon, and PH is the selling price of the Horizon. DS = 222 – 0.60PS + 0.35PH DH = 270 + 0.10PS – 0.64PH The store wishes to determine the selling price...
Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling prices for these two cameras are as follows. Ds = demand for the Sky Eagle Р S = selling price of the Sky Eagle = demand for the Horizon H PH = selling price of the Horizon DHT Ds = 221 – 0.60Ps + 0.35PH = 275 + 0.10Ps - 0.64P, The store wishes to determine the selling price that maximizes revenue for these...
Problem 13-5 im's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows (Ds - demand for the Sky Eagle, Ps is the selling price of the Sky Eagle, DH is the demand for the Horizon and PH is the selling price of the Horizon) Ds-225-0.6Ps +0.3PH DH-270 +0.1Ps-0.58PH The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function for these...
Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows (DS = demand for the Sky Eagle, Ps is the selling price of the Sky Eagle, DH is the demand for the Horizon and PH is the selling price of the Horizon): DS = 222 - 0.60Ps + 0.35PH DH = 270 + 0.10Ps - 0.64PH The store wishes to determine the selling price that maximizes revenue for these...