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?

Question

Quizplus · Accepted Answer

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.

A Local Retailer Has Decided to Carry a Well-Known Brand