A Careful Analysis of Demand for Bubbles in Strasburg, North

question 16

Multiple Choice

A careful analysis of demand for Bubbles in Strasburg, North Dakota, reveals a strange segmentation in the market.(Recall Bubbles is the beverage which produces an unexplained craving for Lawrence Welk's music.It is produced by the process Q =min{R/4, W}, where R is the number of pulverized Lawrence Welk records and W is gallons of North Dakota well water.P_R = $1, P_W = $4.) If demand for Bubbles by senior citizens is described by Q₀ = 500P^-3/2 while demand by those under 65 years old is Q_y = 50P^-4, how should Bubbles be priced to maximize profits?

• A)$12 for senior citizens and $32 for those younger
• B)$12.57 for all citizens of Strasburg
• C)$24 for senior citizens and $10.67 for those younger
• D)$8 for senior citizens and $21.33 for those younger
• E)$48 for senior citizens and $21.33 for those younger

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Definitions:

Outsourcing

The practice of hiring third-party vendors to perform tasks, handle operations or provide services that are either difficult to manage or outside of the business's core competencies.

Institute For Supply Management

A non-profit organization that conducts research and publishes reports on supply management practices.

Ethical Supply Management

The practice of considering moral and ethical principles in the management and procurement processes of the supply chain, focusing on sustainability, fair labor practices, and responsible sourcing.

Ethical Issues

Concerns or dilemmas that involve right or wrong behavior in the business realm.