Price, dollars per pound 1.90 1.35 1.25 1.20 0.95 0.85 0.73 Using the Excel trendline option to estimate a linear demand function, the linear demand function is Q=12.53-6.25p. Suppose the quantity in the first row of the table were 2 instead of 1.5. The linear demand function would now be Quantity, thousand pounds per day 1.5 2.2 4.4 5.9 6.5 7.0 8.8 Q= =-p. (Enter your responses rounded to two decimal places.) Suppose the quantity in the second row of the table were 3.2 instead of 2.2. The linear demand function would now be Q= =-p. (Enter your responses rounded to two decimal places.)

Price, dollars per pound 1.90 1.35 1.25 1.20 0.95 0.85 0.73 Using the Excel trendline option to estimate a linear demand function, the linear demand function is Q=12.53-6.25p. Suppose the quantity in the first row of the table were 2 instead of 1.5. The linear demand function would now be Quantity, thousand pounds per day 1.5 2.2 4.4 5.9 6.5 7.0 8.8 Q= =-p. (Enter your responses rounded to two decimal places.) Suppose the quantity in the second row of the table were 3.2 instead of 2.2. The linear demand function would now be Q= =-p. (Enter your responses rounded to two decimal places.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 7E

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Price, dollars per pound Quantity, thousand pounds per day 1.90 1.5 1.35 2.2 1.25 4.4 1.20 5.9 0.95 6.5 0.85 7.0 0.73 8.8 Using the Excel trendline option to estimate a linear demand function, the linear demand function is Q = 12.53 – 6.25p. Suppose the quantity in the first row of the table were 3 instead of 1.5. The linear demand function would now be Q =]-p. (Enter your responses rounded to two decimal places.) Suppose the quantity in the second row of the table were 3.2 instead of 2.2. The linear demand function would now be Q =- p. (Enter your responses rounded to two decimal places.) Enter your answer in each of the answer boxes. JUL 11 MacBook Pro
The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 97e° -3p²/2, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥ 400. E = X Interpret your answer. The demand is going down ✔✔✔ by X% per 1% increase in price at that price level. Thus, large price decrease ✓ (b) At what price will revenue be a maximum? (Round your answer to the nearest integer.) X yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) paint-by-number sets per month is advised.
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