Roger Is Willing to Promote and Sell Two Types of Smart

question 31

Essay

Roger is willing to promote and sell two types of smart watches, X and Y, at his outlet. The demand for these two watches are as follows:
D_X = -0.45P_X + 0.34P_Y + 242
D_Y = 0.2P_X - 0.58P_Y + 282
where, D_X is the demand for watch X, P_X is the selling price of watch X, D_Y is the demand for watch Y, and P_Y is the selling price of watch Y.
Rogers wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function for these two models, and find the revenue maximizing prices.

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Definitions:

Experimenter's Orders

Instructions given by the leader of an experiment, which can significantly influence participants' behavior and responses.

Zimbardo

Refers to Philip Zimbardo, a psychologist noted for his research on social influence, including the famous Stanford prison experiment.

Simulated Prison

A psychological experiment setting designed to study the effects of perceived power, focusing on the behavior of individuals designated as prisoners and guards.

Prisoners

Individuals who are held in confinement as a result of being convicted of a crime.