Using Excel, Tough Scrubbers estimates the quarterly demand for their kitchen sponges to be Q^d = 5,600 - (25 × P). If the actual demand for their kitchen sponges is 5,563 when a price of $3 per sponge is charge, what is the estimated residual? A)38 B)0 C)12 D)25

Question

Quizplus · Accepted Answer

The estimated demand at a price of $3 per sponge is calculated by substituting $3 into the demand equation: QS = 5,600 - (25 × 3) = 5,600 - 75 = 5,525. The actual demand is 5,563. The residual, or the difference between the actual and estimated demand, is 5,563 - 5,525 = 38.

Using Excel, Tough Scrubbers Estimates the Quarterly Demand for Their