11. 0/1.66 pointsI Previous Answers My Notes Ask Your Teacher 3 Based upon marke

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11. 0/1.66 pointsI Previous Answers My Notes Ask Your Teacher 3 Based upon market research, the Hawthorne Company has determined that consumers are willing to purchase 118 units of their portable media player each week when the price is set at $169.20 per unit. At a unit price of $36.00, consumers are willing to buy 340 units per week. (a) Determine the weekly demand equation for this product, assuming price, p, and quantity, x, are linearly related. (b) Determine the weekly revenue function R(x) (c) Determine the number of units consumers will demand weekly when the price is $137.40 per portable media player. units (d) Determine the number of units consumers will demand weekly when the revenue is maximized units (e) Determine the price of each unit when the revenue is maximized dollars Submit Answer Save Progress Practice Another Version

Explanation / Answer

a)

Identify two point (x,p) as (118, 169.20) and (340, 36)

m=slope = (36 -169.20)/(340 -118) = -0.6

Equation is

p -36 = -0.6(x-340)

p = -0.6x +240

b)

R=x*p

= -0.6x²+240x

c)

Sunstitute p = 137.40 in p = -0.6x +240

137.40= -0.6x +240

x = (137.40-240)/(-0.6)

x= 171 units

d)

R= -0.6x²+240x

R' = -1.2x +240

Set R' =0

-1.2x +240 =0

1.2x = 240

x = 240/1.2

x =200 units

e)

Sunstitute x =200 in p = -0.6x +240

p = -0.6(200) +240

=$ 120

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