The Demand for Your College Newspaper Is 2,000 Copies Per

question 63

Short Answer

The demand for your college newspaper is 2,000 copies per week if the paper is given a way free of charge, and the demand drops to 1,000 if the charge is $0.25 per copy. However, the university is prepared to supply only 600 copies per week free of charge but will supply 3,600 per week at $0.50 per copy. At what price should the college newspapers be sold so that there is neither a surplus nor a shortage of papers Round your answer to two decimal places.
$ __________

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Definitions:

Foreign Exchange Market

A global decentralized or over-the-counter market for trading currencies, determining the foreign exchange rates for every currency.

Triangle Arbitrage

A riskless profit strategy that takes advantage of discrepancies between three foreign currencies in the forex market.

Spot Market

A market where financial instruments or commodities are traded for immediate delivery, as opposed to future or forward delivery.

Forward Market

A market in which participants agree to trade a financial instrument or physical commodity for future delivery at a specified price.