As the new owner of a supermarket, you have inherited a large inventory of unsold imported Limburger cheese, and you would like to set the price so that your revenue from selling it is as large as possible. Previous sales figures of the cheese are shown in the following table. Price per Pound, p $3.00 $4.00 $5.00 Monthly Sales, q (pounds) 404 281 225 (a) Use the sales figures for the prices $4 and $5 per pound to construct a demand function of the form q = Ae-bp, where A and b are constants you must determine. (Round A and b to two significant digits.) q = (b) Use your demand function to find the price elasticity of demand at each of the prices listed. (Round your answers to two decimal places.) p = $3 E = p = $4 E = p = $5 E = (c) At what price should you sell the cheese to maximize monthly revenue? (Round your answer to the nearest cent.) $ (d) If your total inventory of cheese amounts to only 200 pounds and it will spoil one month from now, how should you price it to receive the greatest revenue? (Round your answer to the nearest cent.) $

As the new owner of a supermarket, you have inherited a large inventory of unsold imported Limburger cheese, and you would like to set the price so that your revenue from selling it is as large as possible. Previous sales figures of the cheese are shown in the following table. Price per Pound, p $3.00 $4.00 $5.00 Monthly Sales, q (pounds) 404 281 225 (a) Use the sales figures for the prices $4 and $5 per pound to construct a demand function of the form q = Ae-bp, where A and b are constants you must determine. (Round A and b to two significant digits.) q = (b) Use your demand function to find the price elasticity of demand at each of the prices listed. (Round your answers to two decimal places.) p = $3 E = p = $4 E = p = $5 E = (c) At what price should you sell the cheese to maximize monthly revenue? (Round your answer to the nearest cent.) $ (d) If your total inventory of cheese amounts to only 200 pounds and it will spoil one month from now, how should you price it to receive the greatest revenue? (Round your answer to the nearest cent.) $

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Description: As the new owner of a supermarket, you have inherited a large inventory of unsold imported Limburger cheese, and you would like to set the price so that your revenue fromselling it is as large as possible. Previous sales figures of the cheese are sh

Calculus: Early Transcendentals

8th Edition

ISBN:9781285741550

Author:James Stewart

Publisher:James Stewart

Chapter1: Functions And Models

Section: Chapter Questions

Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...

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Concept explainers

Types of Bias

Statistics is the study of data collection, organization, analysis, interpretation, and presentation. Statistical bias is a characteristic of a statistical technique or its findings in which the expected value deviates from the actual root quantitative parameter being estimated. According to the actual definition of bias, it refers to the tendency of a statistic to overestimate or underestimate a parameter.

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Question

As the new owner of a supermarket, you have inherited a large inventory of unsold imported Limburger cheese, and you would like to set the price so that your revenue from
selling it is as large as possible. Previous sales figures of the cheese are shown in the following table.
Price per Pound, p
$3.00
$4.00
$5.00
Monthly Sales, q (pounds)
404
281
225
(a) Use the sales figures for the prices $4 and $5 per pound to construct a demand function of the formq = Ae-DP, where A and b are constants you must determine.
(Round A and b to two significant digits.)
q =
(b) Use your demand function to find the price elasticity of demand at each of the prices listed. (Round your answers to two decimal places.)
p = $3
E =
p = $4
E =
p = $5
E =
(c) At what price should you sell the cheese to maximize monthly revenue? (Round your answer to the nearest cent.)
(d) If your total inventory of cheese amounts to only 200 pounds and it will spoil one month from now, how should you price it to receive the greatest revenue? (Round
your answer to the nearest cent.)

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