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17 May, 17:46

Problem 1-11 For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand. Let d = annual demand for a product in units p = price per unit Assume that a firm accepts the following price-demand relationship as being realistic: d = 800 - 10p where p must be between $20 and $70. How many units can the firm sell at the $20 per-unit price? Round your answer to the nearest whole number.

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  1. 17 May, 21:28
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    The firm will sell 600 units at $20

    Explanation:

    Giving the following information:

    d = annual demand for a product in units

    p = price per unit

    d = 800 - 10p

    p must be between $20 and $70.

    Elastic demand

    We have to calculate how many units the firm will sell at $20

    d=800-10*p=800-10*20 = 600 units
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