The Demand Function for a Product Is Modeled By $p = 3000 \left( 1 - \frac { 5 } { 5 + e ^ { - 0.0002 x } } \right)$

question 120

Multiple Choice

The demand function for a product is modeled by $p = 3000 \left( 1 - \frac { 5 } { 5 + e ^ { - 0.0002 x } } \right)$ . Find the price of the product if the quantity demanded is x = 100. Round your answer to two decimal places where applicable.

• A) \(\$\) 422.12
• B) \(\$\) 2518.48
• C) \(\$\) 491.72
• D) \(\$\) 502.02
• E) \(\$\) 2508.28

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Definitions:

Cost of Retained Earnings

The rate of return that shareholders expect on the earnings that a company keeps and reinvests in its operations.

Risk Premium

The extra return expected by an investor for holding a risky asset rather than a risk-free asset.

Flotation Costs

The costs incurred by a company in issuing new securities, including underwriting, legal, and registration fees.

Equity Capital

Funds raised by a company in exchange for shares of ownership in the company.