Asked by Rachel Sawyer on Apr 24, 2024
Verified
A local retailer has decided to carry a well-known brand of shampoo. The marketing department tells them that the quarterly demand by an average man is: Qd = 3 - 0.25P
And the quarterly demand by an average woman is:
Qd = 4 - 0.5P
The market consists of 10,000 men and 10,000 women. How may bottles of shampoo can they expect to sell if they charge $6 per bottle?
A) 20,000
B) 33,000
C) 25,000
D) 10,000
E) none of the above
Quarterly Demand
The total quantity of a good or service that consumers are willing and able to purchase at a given price over the span of three months.
- Evaluate the influence of changing prices on the demand in the marketplace and consumer outlays.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
C
Explanation :
To find the total demand for both men and women at a price of $6, we need to plug in P=6 into both demand functions and then add them together:
Qd_men = 3 - 0.25(6) = 1.5
Qd_women = 4 - 0.5(6) = 1
Total demand = Qd_men(10,000) + Qd_women(10,000) = (1.5)(10,000) + (1)(10,000) = 25,000
Therefore, the retailer can expect to sell 25,000 bottles of shampoo if they charge $6 per bottle.
Qd_men = 3 - 0.25(6) = 1.5
Qd_women = 4 - 0.5(6) = 1
Total demand = Qd_men(10,000) + Qd_women(10,000) = (1.5)(10,000) + (1)(10,000) = 25,000
Therefore, the retailer can expect to sell 25,000 bottles of shampoo if they charge $6 per bottle.
Learning Objectives
- Evaluate the influence of changing prices on the demand in the marketplace and consumer outlays.