PROBLEMS 1 l. The following functi on describes the dem and condit...

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PROBLEMS 1 l. The following functi on describes the dem and condition for a company that makes caps featuring names of college and professi on al teams in a variety of sports. Q = 2,000 - lOOP where Qis cap sales and Pis price . a. How many caps could be sold at $12 each? b. What should the price be in or der for the company to sell 1,000 caps? c. At what price would cap sales equal zero ? - - -~ ~ ... ..., c 9anro1mm pnce. (!) The follo~ ng relations describe monthly demand and supply for a computer supp ort service catenng to small businesses. QD = 3,000 - l0P Qs = -1,000 + l0P where Qi s the number of busines ses that need services and Pis the monthly fee, in dollars. a. At wh at average monthly fee would demand equal zero? b . At what average monthly fee would supply equal zero? c. Plot th e suppl y and demand curves. d . Wh at is the equilibrium price / output level? e. Suppose demand increases and leads to a new demand curve: QD = 3,500 - I0P Wh at is the effect on supply? What are the new equilibrium P and Q? f. Suppo se new suppliers enter the market due to the increase in demand so the new supply curve is Q = -500 + 1 O P. What are the new equilibrium price and equilibrium quanti ty? Show these changes on the graph. ---~--- =- :-,-;-,--------------- he ABC marketing consulting firm found that a particular brand of tablet PCs has the following demand curve for a certain region: Q = 10,000 - 200P + 0.03Pop + 0.61 + 0.2A where Qis the quantity per month, Pis price ($), Pop is population, /is disposable in come per household (S), and A is advertising expenditure ($). a. Determine the demand curve for the company in a market in which P= 300, Pop= 1,000,000, I = 30,000, and A= 15,000. b. Calculate the quantity demanded at prices of $200, $175, $150, and $125. c. Calculate the rice necessa to sell 45,000 units. 13-} Backgro u nd In form ation: Restaurants have traditionally used bottom-end wines to sell by t----/ the glass (BTG) at reasonably low prices per glass. In recent years, there has been a growing trend with in the resta urant industry to extend BTG programs to higher-end wines. In doing so, they have grea tly expanded the sales of higher-end wines. The typical markup on a bottle of wine is 100 perce nt or mor e, meaning that a bottle ofwine that sells at retail for $25 in a wine shop can be pric ed at $100 in a restaurant. To simplify this discussion, suppose that wine is offered at $10 per glass. The size of the serving can be adjusted depending on the price per bo ttle of the wine being poured. For example , a 4-ounce pour can be offered for wines in the $40 to $50 range anda 2-ounce pour can be offered for wines in the $80 to $100 range. Beca use a bottle has 25.4 ounces, both examples provide more revenue from BTG sales than from full-bottle sales! Such programs have been quite successful and produce little loss due to un sold wine in the bottle because , with proper storage , a partial bottle can be poured the n ext evening with no notable change in taste. The Problem: Suppose you manage a restaurant with a BTG program. You sell 200 glasses p er week at $10 per glass. Asan experiment, you once raised the price during the week to $11 a glass and found that you sold 20 glasses less than before the price change. Suppose you assume this information as the basis for a full demand curve for wine BTG at your restaurant. a Obtain an algebraic and graphical depiction ofyour restaurant's BTG demand . . How man y glasses do you expect to sell at $15 per glass?

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