I solve the demand functon as "Q = -16P + 192"However, I do not know how to maximize the total revenue and cannot explain it why by using theories related to the price elasticity of demand. Could you help me to answer this question?**I asked to Contact support, and they told me to ask this question here again. Thanks. DayQuantityPriceVariable DescriptionsQuantity refers to the number of pecan pies sold on a particular dayrefers to the price charged per pecan pie (measured in dollars)1508.002488.00Price3728.004538.00828.006.758.00638.008488.509528.5010618.5011708.5012598.5013538.5014588.5015439.0016509.0017539.0018389.0019449.0020599.0021419.0022389.5023359.5024459.5025529.5026329.5027399.5028469.50292910.00303510.00312810.00 Hello!To help you with the consultation, please refer to "Penny's Pecan Pies – Data" which I've attached to thismemo.Your first task is to estimate a demand function based on the following relationship:Quantity = a + B¿PriceIn order to do this, you will have to estimate a regression equation using Excel. This will provide youwith the coefficient estimates for a and ß, in the demand function above (round your estimates to thenearest whole number).Your second task is to illustrate the demand function – don't forget to label your diagram!Finally, I would like you to address my main concern: what price should I charge for a pecan pie tomaximize total revenue? Support your argument by using theories related to the price elasticity ofdemand.

Demand function is correct (when co-efficients are rounded off to their closest integers). Q = -16P…

Your first task is to estimate a demand function based on the following relationship: Quantity = a + B,Price In order to do this, you will have to estimate a regression equation using Excel. This will provide you with the coefficient estimates for a and ß, in the demand function above (round your estimates to the nearest whole number). Your second task is to illustrate the demand function – don't forget to label your diagram! Finally, I would like you to address my main concern: what price should I charge for a pecan pie to maximize total revenue? Support your argument by using theories related to the price elasticity of demand.

Your first task is to estimate a demand function based on the following relationship: Quantity = a + B,Price In order to do this, you will have to estimate a regression equation using Excel. This will provide you with the coefficient estimates for a and ß, in the demand function above (round your estimates to the nearest whole number). Your second task is to illustrate the demand function – don't forget to label your diagram! Finally, I would like you to address my main concern: what price should I charge for a pecan pie to maximize total revenue? Support your argument by using theories related to the price elasticity of demand.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 1E

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