The following data are the distances between 20 retail stores and a large distribution center. The distances are in miles.
1 answer:
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Answer:
A)The required linear demand equation ( q ) = -4500p + 41500
B) $4.61
$95680.55
C) No it would not have been possible by charging a suitable price
Step-by-step explanation:
<u>A) find the linear demand equation</u>
given two points ; ( 3, 28000 ) and ( 5, 19000 )
slope ( m ) = ( y2 - y1 ) / ( x2 - x1 )
= ( 19000 - 28000 ) / ( 5 - 3 ) = -4500
slope intercept is represented as ; y = mx + b
where y( 28000) = -4500(3) + b
hence b = 41500
hence ; y = -4500x + 41500
The required linear demand equation ( q ) = -4500p + 41500 ----- ( 1 )
p = price per ride
<u>B ) Determine the price the company should charge to maximize revenue from ridership and corresponding daily revenue</u>
Total revenue ( R ) = qp
= p ( -4500p + 41500 )
hence R = -4500p^2 + 41500p ------ ( 2 )
To determine the price that should maximize revenue from ridership we will equate R = -4500p^2 + 41500p to a quadratic equation R(p) = ap^2 + bp + c
where a = -4500 , b = 41500 , c = 0
hence p = =
= 4.61
$4.61 is the price the company should charge to maximize revenue from ridership
corresponding daily revenue = R = -4500p^2 + 41500 p
where p = $4.61
hence R = -4500(4.61 )^2 + 41500(4.61) = $95680.55
C) No it would not have been possible by charging a suitable price
Alright,
you will need to solve for each variable to find if they got the equation correctly or not..
Let's start with h
isolate h
(1/2)h = A/(b1+b2)
Now we need to get rid of 1/2 we may do so by multiplying both sides by 2
h = 2(A/(b1+b2))
And that's not how they did it for h so Option D doesn't apply
Let's see C
Also doesn't apply since they multiplied 2 only by A rather than A/h
Let's see B
Also not correct they made the same mistake as with option C
Let's see A
again same mistake
when multiplying both sides by 2
the 2 should be as following
I believe you should contact your instructor and explain that non of the options is right.
you will need to solve for each variable to find if they got the equation correctly or not..
Let's start with h
isolate h
(1/2)h = A/(b1+b2)
Now we need to get rid of 1/2 we may do so by multiplying both sides by 2
h = 2(A/(b1+b2))
And that's not how they did it for h so Option D doesn't apply
Let's see C
Also doesn't apply since they multiplied 2 only by A rather than A/h
Let's see B
Also not correct they made the same mistake as with option C
Let's see A
again same mistake
when multiplying both sides by 2
the 2 should be as following
I believe you should contact your instructor and explain that non of the options is right.