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The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera...

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Statistics

The Camera Shop sells two popular models of digital SLR cameras(Camera A Price: 200, Camera B Price: 300). The sales of theseproducts are not independent of each other, but rather if the priceof one increase, the sales of the other will increase. Ineconomics, these two camera models are called substitutableproducts. The store wishes to establish a pricing policy tomaximize revenue from these products. A study of price and salesdata shows the following relationships between the quantity sold(N) and prices (P) of each model:

   NA = 195 -0.6PA + 0.25PB

   NB = 301 +0.08PA - 0.5PB

Construct a model for the total revenue and implement it on aspreadsheet. Develop a two-way data table to estimate the optimalprices for each product in order to maximize the total revenue.Vary each price from $250 to $500 in increments of $10.

Max profit occurs at Camera A price of $ .

Max profit occurs at Camera B price of $ .

Answer & Explanation Solved by verified expert
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put this formulaD319506D3025E2E2301008D305E2 whilechanging    See Answer
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