Question 623240: The average retail price of the cookbook will be $30, and the average cost will be $20.
Assume that the equation for demand is Q = 50,000 – 900P, where
Q = the number of cookbooks sold per month
P = the retail price of books.
Show what the demand curve would look like if you sold the books between $25 and $35.
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! average retail price = $30
average cost = $20
Q = 50,000 - 900P
Q = number of cookbooks sold per month.
P = retail price of books.
let y = Q and let x = P and you can graph this equation.
your equation for graphing is y = 50,000 - 900x
graph looks like this:
when the price is 25 dollars, 27500 books are sold.
when the price is 35 dollars, 18500 books are sold.
at 25.00 per book, the revenue is 687500 and the profit is 137500.
at 35.00 per book, the revenue is 647500 and the profit is 277500.
since the cost is 20, the profit per book at 25 per book is 5.00.
since the cost is 20, the profit per book at 35 per book is 15.00.
sell less books at 35.00 per book but make more profit based on this equation.
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