It is estimated that the rate of change in demand for a manufacturer\'s product
ID: 3347035 • Letter: I
Question
It is estimated that the rate of change in demand for a manufacturer's product is exponential with an instantaneous rate of 2% per year. If the current demand is increasing by 2000 units per year and if the price remains fixed at $400 per unit, how much revenue will the manufacturer receive from the sale of the product over the next 3 years?
Explanation / Answer
demand this year = 100000 units_____________ let demand function be: 100000 = De^(rt)____________ so: 2000 = 100000r_____________ => r = .02__________ in next 3 years total demand: integrate De^(rt) from 0 to 3: 100000/.02[(e^.06) - 1] = 309182.7_________ hence revenue = 123,673,093.0907 $
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.