**Problem:** A manufacturer has been selling 1050 television sets a week at $540 each. A market survey indicates that for each $19 rebate offered to a buyer, the number of sets sold will increase by 190 per week.**a)** Find the demand function $ p(x) $, where $ x $ is the number of television sets sold per week.$ p(x) = $ [blank for answer]**b)** How large rebate should the company offer to a buyer, in order to maximize its revenue?\$ [blank for answer]**c)** If the weekly cost function is $ 94500 + 180x $, how should it set the size of the rebate to maximize its profit?\$ [blank for answer]

Answered: Image /qna-images/answer/4122f23d-054b-4013-b61c-7fd1092cca53.jpg

A manufacturer has been selling 1050 television sets a week at $540 each. A market survey indicates that for each $19 rebate offered to a buyer, the number of sets sold will increase by 190 per week. a) Find the demand function p(x), where x is the number of the television sets sold per week. p(x) = = b) How large rebate should the company offer to a buyer, in order to maximize its revenue? $ c) If the weekly cost function is 94500 + 180x, how should it set the size of the rebate to maximize its profit? S

A manufacturer has been selling 1050 television sets a week at $540 each. A market survey indicates that for each $19 rebate offered to a buyer, the number of sets sold will increase by 190 per week. a) Find the demand function p(x), where x is the number of the television sets sold per week. p(x) = = b) How large rebate should the company offer to a buyer, in order to maximize its revenue? $ c) If the weekly cost function is 94500 + 180x, how should it set the size of the rebate to maximize its profit? S

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Consider the demand function for good1, Q1 = 2037 - 9P1 + 0.6000000000000001P2 - 0.75P3 + 0.07Y Where, price of good1 (P1) is 59, price of good2 (P2) is 255, price of good3 (P3) is 195, and income (Y) is 24425; (a) Find the price elasticity of demand (PED). (Give your answer to two decimal places) (b) Find the income elasticity of demand (YED). (Give your answer to two decimal places) c) Find the cross price elasticity of demand (XED) between good1 and good3. (Give your answer to east two decimal places) d) Estimate the percentage change in the demand for good1 resulting from a 4% decrease in the price of good2. (Give your answer to two decimal places, if required)
A microchip company is looking at new product lines and is reviewing the findings of its marketing team. The second product, a semiconductor microchip, has the elasticity of demand function: E(p)=√p^2-6p+5. If they set the price at $5.35 will the demand be elastic or inelastic? To increase the revenue should they raise the price or lower it?
According to the reading "Gasoline Consumption in the US and Norway", the estimate for the long- run price elasticity of demand was Ed=1.44. We also know that there is better access to public transportation in Norway than in the US. So, this estimate likely the true long-run price elasticity of demand for gasoline. In other words, if the public transit system in Norway was the same as in the US, a 1% increase in the price of gas would reduce the quantity demanded in the long-run by. than 1.44%. (Fill in the blanks.) O Overstates, more. Overstates, less. Overstates, more. O Understates, less.
Your firm, Content Colleague, is similar to Happy Worker, a Canadian company that designs and manufactures toys and collectibles. Your research analyst has estimated the demand function for your stuffed toy animals is: If you set the price of a plush toy at $6, the number of toys that consumers will buy is [ million. Q=30 million - (4 million x P).
Worldwide annual sales on smart phones over a two year period were approximately q=-5p+3090 million phones at the selling price of $p per phone. (a) obtain a formula for the price elasticity of demand E. E=______ (b) in one of the years the actual selling price was $355 per phone. What was the corresponding price elasticity of demand? E=______ The demand is going (up/down) by about _____% per 1% increase in that price level.
(c) Given the demand function P = -3Q² – 6Q + 96, (i) find elasticity when the price is $63. Is the demand elastic, unit elastic or inelastic? Hence, will the revenue increase or decrease if the price increases? (ii) If the price increase by 3%, calculate the corresponding percentage increase in demand.
If the supply equation is Q= 50 + 4P +0.2P (a) find the price elasticity of supply if the current price is 8. (b) estimate the percentage change in supply if the price rises by 6%. ..... (a) (Do not round until the final answer. Then round to two decimal places as needed.) (b)% (Do not round until the final answer. Then round to two decimal places as needed.)
At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 45%. She estimates that the price elasticity of demand for Webs-R-Us is −0.70. The manager expects the number of websites designed to decrease by?
Suppose a certain city has a monopoly cable-television company. This company has total costs TC = Q2 + 10Q + 75. (Hint: using calculus, this means MC = 2Q + 10 since MC is the derivative of TC with respect to output.) The demand in the community is approximated by the equation Qd = 85 - P/2 (alternatively, you can write the demand equation as Qd = 85 – 0.5P). Graphically depict the demand curve as well as the marginal cost (MC) curve. If the cable company is free to choose its own price Pm and quantity Qm, graphically depict the monopoly equilibrium price and quantity. Add any other curve(s) to your diagram that may be required to obtain this outcome. Compute and state the exact monopolist equilibrium price Pm and quantity Qm that you depicted graphically.
A and b X = 10 Y = 19
For the toatl revenue equation R(q)=1000+1000q-8q^2 how does the second order sufficient condition establish that there is a maximum total revenue? What is the quantity where total revenue is maximized?
A manufacture has been selling 1900 television sets a week at $510 each. A market survey indicates that for each $16 rebate offered to a buyer, the number of sets sold will increase by 160 per week. a) Find the demand function p(x), where a is the number of the television sets sold per week. p(x)=\ b) How large rebate should the company offer to a buyer, in order to maximize its revenue? S c) If the weekly cost function is 161500+ 1702, how should it set the size of the rebate to maximize its profit?