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Maximizing profit. A store sells two brands of camping chairs. The store pays $60 for each brand A chair and $80 for each brand B chair. The research department has estimated the weekly demand equations for these two competitive products to be
where p is the selling price for brand A and q is the selling price for brand B.
- (A) Determine the demands x and y when p = $100 and q = $120; when p = $110 and q = $110.
- (B) How should the store price each chair to maximize weekly profits? What is the maximum weekly profit? [Hint: C = 60x + 80y, R = px + qy, and P = R − C.]
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