The Camera Shop sells two popular models of digital SLR cameras ...

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     The Camera Shop sells two popular models of digital SLR cameras   (Camera A Price: 230, Camera B Price: 310). The sales of these products are   not independent of each other, but rather if the price of one increase, the   sales of the other will increase. In economics, these two camera models are   called substitutable products. The store wishes to establish a pricing policy   to maximize revenue from these products. A study of price and sales data   shows the following relationships between the quantity sold (N) and prices   (P) of each model: NA = 192 - 0.5PA + 0.25PB NB = 305 + 0.08PA - 0.6PB   Construct a model for the total revenue and implement it on a spreadsheet.   Develop a two-way data table to estimate the optimal prices 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 $ _______    

    • 8 years ago
    PA PB NA = 192 - 0.5PA + 0.25PB NB = 305 + 0.08PA - 0.6PB R = NA*PA + NB*PB ...
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      TheCameraShopsellstwopopularmodelsofdigitalSLRcameras.xlsx