Roger Is Willing to Promote and Sell Two Types of Smart

question 40

Essay

Roger is willing to promote and sell two types of smart watches, X and Y, at his outlet. The demand for these two watches are as follows.
D_X = -0.45P_X + 0.34P_Y + 242
D_Y = 0.2P_X - 0.58P_Y+ 282
where, D_X is the demand for watch X, P_X is the selling price of watch X, D_Y is the demand for watch Y, and P_Y is the selling price of watch Y.
Rogers wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function for these two models, and find the revenue maximizing prices.

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