As the new owner of a supermarket, you have inherited a largeinventory of unsold imported Limburger cheese, and you would liketo set the price so that your revenue from selling it is as largeas possible. Previous sales figures of the cheese are shown in thefollowing table.
Price per Pound, p $3.00 $4.00 $5.00
Monthly Sales, q (pounds) 402 284 222
(a) Use the sales figures for the prices $4 and $5 per pound toconstruct a demand function of the form q = Ae−bp, where A and bare constants you must determine. (Round A and b to two significantdigits.) q =
(b) Use your demand function to find the price elasticity ofdemand at each of the prices listed. (Round your answers to twodecimal places.) p = $3, E = p = $4, E = p = $5, E =
(c) At what price should you sell the cheese to maximize monthlyrevenue? (Round your answer to the nearest cent.) $
(d) If your total inventory of cheese amounts to only 200pounds, and it will spoil one month from now, how should you priceit to receive the greatest revenue? (Round your answer to thenearest cent.)
