As a New Owner of the Supermarket, You Have Inherited

question 29

Multiple Choice

As a new owner of the supermarket, you have inherited a large inventory of unsold imported Limburger cheese, and you would like to price it so that your revenue from selling it is as great as possible. Previous sale figures of the cheese are shown in the following table. $$\begin{array} { | l | l | l | l | } \hline \text { Price per pound, } \boldsymbol { p } & \$ 3.00 & \$ 4.00 & \$ 5.00 \\\hline \text { Monthly sales (pounds) , } q & 407 & 301 & 223 \\\hline\end{array}$$ Use the sale figures for the $3 and $5 per pound prices to construct a demand function of the form $q = A e ^ { - b p }$ where A and b are constants you must determine. (The values of A, b were rounded.)

• A) \(q = 1,100 e ^ { - 1.3 p }\)
• B) \(q = 1,000 e ^ { - 0.4 p }\)
• C) \(q = 1,100 e ^ { - 0.2 p }\)
• D) \(q = 900 e ^ { - 1.3 p }\)
• E) \(q = 1,000 e ^ { - 0.3 p }\)

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Definitions:

Personal Care Items

Products intended for personal hygiene and grooming, including items such as soap, shampoo, and toothpaste.

Direct Selling

A distribution method where products are sold directly to consumers, bypassing traditional retail locations.

Telemarketing

The direct marketing of goods or services to potential customers over the telephone or through subsequent face-to-face or Web conferencing appointments.

Online Retailing

Selling goods or services over the internet, which includes e-commerce websites and online marketplaces.