BUSINESS: Automobile Sales An automobile dealer is selling cars at a price of $12,000. The demand function is D(p) = 2(15 – 0.001p)², where p is the price of a car. Should the dealer raise or lower the price to increase revenue?

BUSINESS: Automobile Sales An automobile dealer is selling cars at a price of $12,000. The demand function is D(p) = 2(15 – 0.001p)², where p is the price of a car. Should the dealer raise or lower the price to increase revenue?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 6.3IP

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BUSINESS: Automobile Sales An automobile dealer
is selling cars at a price of $12,000. The demand
function is D(p) = 2(15 – 0.001p)?, where p is the
price of a car. Should the dealer raise or lower the
price to increase revenue?

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