Solve the Problem. -There Is a Relationship Between the Expected Number of Tickets

question 45

Multiple Choice

Solve the problem.
-There is a relationship between the expected number of tickets sold for a raffle and the dollar value of the prize for the raffle. The equation T - 5P = 150 describes this relationship, where T is the expected number of tickets Sold, and P is the dollar value of the raffle prize. Suppose the expected ticket sales for a certain raffle are 2650. Substitute 2650 into the equation to determine the dollar value of the raffle prize.

• A)$450
• B)$2500
• C)$500
• D)$13,400

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Definitions:

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Target Costing

A pricing method that involves determining a product's selling price and then subtracting desired profit to arrive at a target production cost.

Target Costing

A pricing strategy where the selling price of a product is determined first, and then the manufacturing cost is managed to meet that target price.

Price Control

Government or company policies aimed at regulating or setting prices for goods and services in a market.