 Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.

QUESTION

# For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand.

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.

1. How many units can the firm sell at the \$20 per-unit price? Round your answer to the nearest whole number.
2. d =  units
3. At the \$70 per-unit price? Round your answer to the nearest whole number.
4. d =  units
5. What happens to annual units demanded for the product if the fim increases the per unit price from \$26 to \$27?
6. If the firm increases the per unit price from \$26 to \$27, the number of units the firm can sell
7.  by .
8. From \$42 to \$43?
9. If the firm increases the per unit price from \$42 to \$43, the number of units the firm can sell
10.  by .
11. What is the suggested relationship between the per-unit price and annual demand for the product in units?
12. This suggests that the relationship between the per-unit price and annual demand for the product in units is
13.  between \$20 and \$70 and that annual demand for the product
14.  by  units when the price is increased by \$1.
15. Show the mathematical model for the total revenue (TR), which is the annual demand multiplied by the unit price. Express your answer in terms of p.
16. TR =
17. (800−10P)P
18. Based on other considerations, the firm's management will only consider price alternatives of \$30, \$40, and \$50. Use your model from part (c) to determine the price alternative that will maximize the total revenue.
19. Total revenue is maximized at the \$
20.  price.
21. What are the expected annual demand and the total revenue corresponding to your recommended price?