An Electronics Store Sells Two Models of Television

question 37

Essay

An electronics store sells two models of television. The sales of these two models, X and Y, are dependent, that is, if the price of one increases, the demand for the other increases. A study is made to find the relationship between the demand (D) and the price (P) in order to maximize the revenue from these products. The result of the study is shown below.
D_X = 476 - 0.54 P_X + 0.22 P_Y
D_Y = 601 + 0.12 P_X - 0.54 PY
a. Construct a model for the total revenue and implement it on a spreadsheet.
b. Develop a two-way data table to estimate the optimal prices of each of the two products in order to maximize the total revenue. Vary price of each product from $600 to $900 in increments of $50.

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Definitions:

Assault

A deliberate action taken by an individual that causes someone else to fear immediate harmful or offensive physical interaction.

Coercive Persuasion

A psychological technique aimed at changing a person's beliefs or behaviors against their will through pressure and force.

Emotional Sympathy

The capacity to understand, share, and be affected by the feelings and emotions of another individual.

Unlawful Gambling

Participation in betting or wagering activities that are not authorized by law.