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What direction should the apple producers in Question 6 move the price if they wanted to maximize their revenue?

What direction should the apple producers in Question 6 move the price if they wanted to maximize their revenue?

Elementary Linear Algebra (MindTap Course List)
Elementary Linear Algebra (MindTap Course List)
8th Edition
ISBN:9781305658004
Author:Ron Larson
Publisher:Ron Larson
Chapter7: Eigenvalues And Eigenvectors
Section7.4: Applications Of Eigenvalues And Eigenvectors
Problem 69E: Use your schools library, the Internet, or some other reference source to find the real-life...
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What direction should the apple producers in Question 6 move the price if they wanted to maximize their revenue? There is not enough information. Don't change the price. Cut the price. Raise the price. Q10
Transcribed Image Text:What direction should the apple producers in Question 6 move the price if they wanted to maximize their revenue? There is not enough information. Don't change the price. Cut the price. Raise the price. Q10
Q6 The demand function for apples is the following. Qn = 10 - Pn + 0.2Y +0.5 P. - 2P, + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations)
Transcribed Image Text:Q6 The demand function for apples is the following. Qn = 10 - Pn + 0.2Y +0.5 P. - 2P, + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations)
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