An Electronics Store Sells Two Models of Television

question 20

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:
DX = 476 - 0.54 PX + 0.22 PY
DY = 601 + 0.12 PX - 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:

Serotonin

A neurotransmitter involved in regulating mood, appetite, and sleep, among other functions.

Xanax

A prescription medication, generically known as alprazolam, used to treat anxiety and panic disorders.

Irrational Belief

A thought or presumption which is not based on reason or factual evidence, often leading to negative psychological outcomes.

Suicidal Thoughts

Thoughts about taking one's own life, often occurring in individuals suffering from depression, anxiety, or severe stress.