West Central State College is making holiday wreaths to raise money for a homeless shelter. From past sales experience, it was learned that if the wreaths are priced at $12 apiece, the college will sell 32, but if the price is raised to $24, it will sell only 24. On the other hand, at a price of $12, the college is willing to make only 26 wreaths, but at a price of $24, it will make 30. What price should the college set so that its supply will equal the demand for the wreaths?

West Central State College is making holiday wreaths to raise money for a homeless shelter. From past sales experience, it was learned that if the wreaths are priced at $12 apiece, the college will sell 32, but if the price is raised to $24, it will sell only 24. On the other hand, at a price of $12, the college is willing to make only 26 wreaths, but at a price of $24, it will make 30. What price should the college set so that its supply will equal the demand for the wreaths?

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

Chapter16: Bargaining

Section: Chapter Questions

Problem 8MC

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