The Demand Function for a Product Is Modeled By $p = 4000 \left( 1 - \frac { 5 } { 5 + e ^ { - 0.0003 x } } \right)$

question 32

Multiple Choice

The demand function for a product is modeled by $p = 4000 \left( 1 - \frac { 5 } { 5 + e ^ { - 0.0003 x } } \right)$ . What is the limit of the price as x increases without bound? Round your answer to two decimal places where applicable.

• A)The limit of the price as x increases without bound is -1.
• B)The limit of the price as x increases without bound is 1.
• C)The limit of the price as x increases without bound is 0.
• D)The limit of the price as x increases without bound is \(4000\) .
• E)The limit of the price as x increases without bound is \(5\) .

---

Definitions:

Stock Split

An action taken by a company to divide its existing shares into multiple shares to boost the liquidity of the shares, while keeping the market capitalization the same.

Market Value

The open market value at which a service or asset is available for trading.

Shares Outstanding

The total number of shares of stock that are currently owned by investors, including shares held by institutional investors and restricted shares owned by the company’s insiders.

Reverse Stock Split

A decrease in the number of a corporation's outstanding shares, which increases the share price proportionally.