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 5,535 when a price of $4 per sponge is charge, what is the estimated residual? A)60 B)18 C)0 D)35

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Quizplus · Accepted Answer

The estimated demand at a price of $4 is calculated by substituting $4 into the demand equation: QS = 5,600 - (25 × 4) = 5,600 - 100 = 5,500. The actual demand is 5,535, so the residual (actual - estimated) is 5,535 - 5,500 = 35.

Using Excel, Tough Scrubbers Estimates the Quarterly Demand for Their